Understanding Non-Competition Clauses

Many workers across the country are still facing difficulties related to the last recession, and while the job market has been improving, it can still be difficult to find rewarding employment. When individuals who are looking for work or simply trying to improve their job prospects come across a job that fits their needs, it can be a welcome relief. However, it is important to make sure that you understand all aspects of what accepting a job in today’s job market could entail. Does your employment agreement contain a non-competition clause?

Understanding Non-Competition Clauses

Non-competition clauses come in a variety of forms. Typically, non-competition clauses within the context of employment agreements prevent an employee from going to work for rival companies in case that employee leaves the company. Non-competition clauses have to be reasonable, but it is not hard to include a legal non-competition clause in employment agreements that can significantly inhibit your employment options outside of that employer.

Accepting or Challenging the Clause

The most straightforward way of challenging these types of clauses is to demonstrate that subsequent employment does not actually violate the non-competition clause. For instance, if you are serving in a role that is distinctly different than your role at a previous employer, you might be able to challenge the non-competition clause. Courts do not necessarily want to go out of their way to restrict the rights of an individual to find gainful employment, and if the non-competition clause does not cover your specific transition to a new job, then you should definitely consult with us about challenging it.

If you can prove that the non-competition clause is unreasonably broad, courts are likely to be more open to such a challenge. This often involves proving that an employer has no legitimate business interest in enforcing the clause, which can often be the case. For instance, if your business knowledge extends only to the extent of a company’s activities within the current fiscal year, there is little chance that the company has an interest in upholding a non-competition clause that would bar you from working in that particular industry for three years or more. Additionally, if the business that holds the non-competition clause has a typical geographic market of 30 miles, it would be difficult for them to prove that a non-competition clause that extends for 75 miles is reasonable.

If your employer breaches the terms of your employment agreement, a court might find that the entire agreement, including a non-competition clause, is void and thus unenforceable. A non-competition clause may also be unenforceable if you are the victim of mass layoffs or are otherwise removed from your previous position without cause.

Legal Assistance with Non-Competition Clauses

Ultimately, the decision to accept or challenge a non-competition clause in an employment agreement is up to the individual and his or her unique circumstances. However, there are some important things to keep in mind when determining whether or not to challenge such clauses. Generally, when you have the opportunity to consider the terms of an employment agreement, you should not rush. It is important to understand how every clause in an employment agreement will affect your rights, including non-competition clauses. If you find yourself being hindered by a non-competition clause, there are ways to challenge it. Contact an experienced Jurado & Farshchian emplyment law attorney at 305-921-0440 or email us at [email protected]. We can help you determine is a non-competition clause is enforceable and whether or not you should challenging it.

Read more at Should You Challenge the Non-Competition Clause in Your Employment Agreement?