Are Non-Compete Agreements Enforceable?

Non-Compete agreements are an important aspect of business and help a business prevent unfair competition. They are created to try and prevent any unfair competition between an employee and an employee’s previous employer. When a non-compete is well-drafted with clear requisites, it is valuable for a business in keeping their employees and protecting its confidential information. On the other hand, they can also be too restrictive and therefore useless.

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When Non-Compete Agreements are Enforceable

Many ask are non-compete agreements enforceable? As long as a non-compete is written well, and serves the interests of the employer but not broader than necessary, the agreement is enforceable. Many myths have come about regarding non-compete agreements, and it is much better to be safe and sure about any agreement you are signing as an employee.

Noncompetition Agreements that are Too Restrictive

Some non-compete agreements are very restrictive. This can mean either the state will limit the enforceability of the agreement or if fully enforced, the employee may find it almost impossible to get work in the field after leaving that job. Non-compete agreements can stop a person from working in the same industry that he just left. This can mean that after years of education and learning skills, he or she can’t find a similar job with comparable pay in a specific geographic area. Without properly written and phrased non-competes, professionals won’t be able to freely find work, or be able to change employers when they need to.  A noncompete agreement has real life consequences.

When Courts Won’t Enforce a Noncompetition Clause

Whenever a non-compete is signed, there has to be something of value given to the employee in exchange for signing the agreement. An exchange of value for a newly hired employee is typically that he is being hired for the job. For employees who have already been hired, some other consideration of value must be made or the non-compete can’t be enforced. The courts also won’t enforce an agreement when it restricts the competition for too long a period. Usually a 6- month period is considered normal. This could vary from business to business. The courts may not enforce non-compete agreements if it restricts someone from working in a large territory. Often the towns, counties or cities are listed but if too wide an area, it would be unfair and therefore not enforceable.

Legal Counsel for a Noncompetition Clause

When asked to sign a non-compete agreement, it is wise to have a contract attorney look it over and determine if it needs to be changed or even not signed at all. You are in danger of restricting future employment when not having legal counsel protect you.

What Happens When You Break a Noncompetition Clause?

So, what happens when you break a non compete agreement? Non-compete agreements is a contract that is between an employer and an employee. The signed agreement states that the employee agrees that he or she will not enter into a competition with the employer, either during the time of employment or afterwards. It prevents employees from entering professions or markets that are in direct competition with the employer.

Breaking the Non-Compete Agreement

There are a number of things that may happen if an employee does violate or breach  non-compete agreements. It can also be that nothing happens for the violation. It seems that non-compete agreements are not looked upon favorably by the courts in most states. Due to this, you would want to ensure any non-compete agreement insisted upon by an employer be legally valid and enforceable under the laws of the state.

Legally Valid Noncompete Agreements for Your Job

When you violate a legally valid agreement, it can cost you money. The employer can file a lawsuit against you and ask for money damages and you may have to pay your former employer. The employer can also ask for an injunction, which will force to you stop the violations due to breach of contract. Factually, the employer can also file a suit against your new employer. In this case, you will probably end up being fired from that job so that new employer can avoid litigation.

Not Having Consequences from Breaking Agreements

At times there is no action taken when you violate a non-compete agreement, and this would be when the employer would rather not go to the trouble of taking legal actions against you. Also if the agreement isn’t binding, it is possible you won’t suffer consequences.

They Should Consult an Attorney

It is important to have an attorney check your non-compete agreement prior to signing it. You want to ensure it is enforceable and binding. You also want to be sure you understand what the non-compete agreement is asking of you. They can be so restrictive that you wouldn’t want to sign it at all. Once reviewed by a contract attorney, you will know whether or not it is a wise idea to sign it and protect yourself for any future work.

Do You Get Paid During a Noncompetition Period?

So, do you get paid during a non compete? Something that is seldom thought of when first seeing a non-compete agreement is whether or not an employee would be paid while the non-compete is in effect. The non-compete prohibits an employee from earning a living after leaving the employer. Being paid during a non-compete can be an important part of the agreement and has advantages to both the employer and employee.

What is a Noncompete Agreement?

A non-compete agreement is a contract that is given to new employees upon hiring. It is an agreement that the employee will agree to not work with a competitor in a similar position for a certain period of time. The time this will cover is typically from 6 to 24 months, depending on the business.

Why Would You Want to be Paid?

Employees would want to be paid during the time they are not allowed to work for a competitor because they will be limited in work they can do that won’t compete with their last employer. It solves the problem of finding a job that isn’t prohibited under the contract agreement.

Benefit for the Employee

It’s pretty obvious that the employee would benefit from such an agreement. They would be getting an income during the period laid out where they could not work in competition. It would also provide an incentive to the employee not to violate the agreement and end up getting sued.

Benefit for the Employer

When the employer must consider that he will pay the employee for the duration set out by the agreement, he will hesitate in making the time and geographic scope of the contract extensive. If the employer does need to enforce the agreement for any reason, he will have the contractual right.

Noncompetition Clause Lawyer

When your physician contract is given a review by an experienced attorney, you will find financial benefits which end up outweighing the cost of the attorney review. Leave it to the experts. If you are in need of a review of an agreement or contract analysis schedule with a Non-Compete Agreement Review with Chelle Law today!