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Non-compete agreements are business contracts used between employers and employees to prevent employees from leaving a company and taking clients with them or in business sales to prevent the seller from opening a competing business within a certain distance or timeframe. Most law firms would be able to assist in creating an agreement. There are many free templates and forms that can be used without an attorney.
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∙ 10y ago
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How does my employer get an injunction against me for violating my non-compete agreement Is it a one-sided process or do I get to defend my position and present facts?
Non-compete agreements are difficult to enforce. If you don't steal customers, they have a hard time preventing you from earning a living. You should, of course, consult an attorney in your area that knows the laws in your state.
Need a Non compete legal form?
Since there exists various non-compete formats. You can create a non-compete agreement incorporating the requisites restraining the other party, basis your business requirements. Incase you need help to create one, please provide me the details pertaining to business requirement and i can create one draft for you which you can use as a standard document for executing non-compete agreements.
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What is a Non compete agreement?
A non-compete clause or covenant not to compete(CNC), is a term used in contractunder which one party (usually an employee) agrees not to pursue a similar profession or trade in competition against another party (usually the employer).Often, a non-compete agreement is used to prevent an employee from quitting and going to work for a competitor. Usually, non-compete provisions are often 6 - 12 months long.Whether a non-compete is valid and enforceable varies from state to state. For example, California rarely finds such agreements valid. My own state of Virginia will only enforce non-compete agreements which are reasonable in geographical scope and duration.We write about the enforceability of non-competes in Virginia on our blog:http://virginianoncompete.blogspot.com
When a Non-Compete Clause Will Hurt You?
Professions that require an employee to have access to trade secrets, client contact information or conduct business in a set target market that is competitive may require a non-compete agreement be signed upon acceptance of the position. These non-compete agreements are meant to protect the interest of the company and prevent former employees from disclosing their business operations or client list to the competition. Before you sign one of these contracts, you need to understand when a non-compete will hurt you. If you are in a niche business, signing a non-compete can hurt you should you find yourself needing to find employment after leaving the company that you have the agreement with. A perfect example is a professional in a highly specialized sales environment. If your former employer prevents you, by means of the non-compete, from working for any other company in the niche within a 200 mile radius of their location you would likely have to relocate or change industries to stay within the terms of the non-compete. While a non-compete agreement that only prevents you from sharing trade secrets with a new employer may not cause you any problems, be very careful if the terms of your non-compete limits you in any way from starting your own business or working within your current market or city. You should also consider the implications of client based non-competes. Some companies contract many different vendors to meet their needs. If you sign a non-compete preventing you from having any contact with your employer’s clients, you could be causing a major roadblock for your career. Take for example a company that sells office supplies. If you were to enter into a non-compete with this company that restricted you from further contact with their clients, you might find a conflict of interest when you leave this company and are hired by a company that sells sanitation supplies, simply because both work with the same client. Always weigh the pros and cons of any company that requires a non-compete carefully. Make sure you understand the details of the agreement, and if you have concerns speak with a contract attorney prior to signing. Luckily, if you find yourself in a non-compete that is overly restrictive in nature the law may be on your side. The legalities surrounding non-compete agreements are not black and white. Because they are a common cause of litigation and often cause hardship to the employee, many states do not allow the enforcement of such contracts within the state judicial system. Most commonly, the court will try to determine if the company is preventing the former employee from gaining employment elsewhere by the terms of its non-compete.
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