When Is A Non Compete Agreement Enforceable

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On the other hand, the employer can sue you and go to court to get a so-called “injunction” or injunction to prevent you from violating your agreement. Since a breach of a non-compete obligation can cause direct harm to an employer, the court will often apply expedited procedures in these cases. Once your employer has applied for an injunction or injunction, they may only expect a few days or weeks before you have scheduled a hearing before a judge. You may have very little time to hire a lawyer and discuss your case with that person, so be sure to seek the help of an experienced labor lawyer once you know your employer is challenging your actions. A non-compete obligation is part of an employment contract that was originally intended to protect the company`s confidential information (such as intellectual property, customer lists or financial data) from leakage to competitors by employees. Non-competition reduces the risk to employees with respect to their trade secret customer lists and other strategic resources. It allows companies to assert a protectable interest in the expertise and “insider knowledge” of employees as well as in their work. First, non-compete obligations require “valid consideration”. Let`s say you`re in a good employment relationship, but the administration comes to you and says, “We`re going to need you to sign this new contract that has a non-compete clause.

Nothing else has changed. This non-compete obligation is simply not enforceable because you have not given up anything in exchange for the restrictive new pact. Even if you sign the new agreement, the absence of consideration invalidates the non-compete obligation. Non-compete obligations have become commonplace in the workplace and can be stressful for employees and an effective way for employers to protect their business, employees, confidential information and trade secrets. It is a myth that non-compete obligations cannot be imposed on an employee and prevent the employee from working in a job that competes with their former employer. If an employee signs a valid non-compete agreement, it can be enforced against the employee if the employee holds a position that competes with the employee`s previous employer. If the employee does not have a position that competes with the previous employer and does not take actions that cause harm to the previous employer or are unlikely to cause harm, it is unlikely that a non-compete obligation will be applied to the employee. There are many ways in which the non-compete obligation could be flawed, and it is important to discuss this with an employment lawyer before signing the non-compete obligation or if the employee is considering a new position that may compete with the previous employer.

If an injunction is issued by the court, it is a remedy that may prevent you from working as an employee. This may cause you to lose your ability to be employed in violation of the agreement, not to compete for the period set by the court. It may take months or years for the court to make a final decision on whether the non-compete undertaking signed by the employee is actually enforceable. Of course, most employees can hardly wait months or years without being able to make a living, so the T.R.O. hearing is effectively negotiation in most cases. Nowadays, non-compete obligations are emerging in almost all sectors. Maybe it`s because there`s more to protect or the ways to share this information have become easier. It may also be because people are valuable possessions and the loss of talented minds to competition is a huge success.

Not only are they an asset, but they can also use what they know from one company to another. Agreements between companies are treated differently, so don`t be confused if someone tells you that the court will find a way to resolve the issues. Here, too, the courts will not impose a non-compete obligation in the context of individual employment contracts, which is not enforceable in the written version. .