Non-Compete Agreements: What Employees Need to Know
Worried about a non-compete clause? Learn about the current legal landscape and your options.
What Is a Non-Compete Agreement?
A contract provision restricting an employee from working for a competitor or starting a competing business for a specified period after leaving. Typically defines geographic area, time period, and prohibited activities.
The Shifting Legal Landscape
The FTC has proposed a nationwide ban on most non-competes. Several states have enacted significant restrictions. Some ban them for low-wage workers, others require additional compensation, and California prohibits them for most employees.
When Non-Competes May Be Unenforceable
Courts may refuse to enforce ones that are unreasonably broad geographically, excessively long, not supported by legitimate business interests, imposed without adequate consideration, or overly restrictive.
What to Do If You Have One
Review the language carefully, consult an attorney before accepting a new position, and consider whether your new employer may help defend against enforcement. Do not assume it is unenforceable without legal advice.
Think You Have a Case?
This article is for informational purposes. For advice specific to your situation, speak with an experienced employment attorney at no cost.
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