Can you get out of a non-compete clause?

Can you get out of a non-compete clause?

Not necessarily. Fortunately for you, courts have recently limited the power of non-compete agreements to protect employees’ rights, making it possible (though not guaranteed) for you to get out of your non-compete. For a non-compete agreement to be enforceable, it must first be reasonable.

Why are non competes illegal?

The agreement is unenforceable because it restricts competition in an unreasonably large territory. Many Non-Competes are unenforceable because they restrict competition across too broad of a territory. Non-Competes usually describe a restricted area in which the employee cannot compete.

Are non-compete agreements enforceable if terminated?

Even though a non-compete agreement can still be enforced when you are fired, you could potentially get out of it if the employer breaches your contract. You can also get out of the agreement if the employer fired you for a reason that is not just or fair.

What states do not allow non competes?

While most states recognize non-competes, several states – including California, North Dakota, Montana, and Oklahoma – outright ban or prohibit employee non-competes in all or nearly all situations. Washington, D.C. enacted its own ban on non-competes in January of this year.

Is it possible to void a non-compete contract?

Voiding a non-compete contract is possible in certain circumstances. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.

Can a covid-19 non-compete agreement be void?

If you left your employment before (or during) the Covid-19 pandemic and are currently honoring a non-compete, all bets may be off in certain situations. For example, if your former employer or career happened to have been in what has now been termed an “essential business”, we would argue that your non-compete should be void.

Why are non-competes falling out of favor?

Non-competes have been falling out of favor before Covid-19, and we believe that they will be even more frowned upon in the coming months. Courts will be reluctant to punish employers who are making efforts to getting back to business and providing employment even where there might be an existing non-compete.

Can a future employer interfere with a non-compete agreement?

IF YOU ARE AN EMPLOYER LOOKING TO HIRE SOMEONE WITH A CURRENT NON-COMPETE: Non-compete agreements often require the employee to inform any future employer about the existence of the non-compete. A future employer can be liable for interfering with a contract if they knowingly hire an employee who is under a non-compete.