Do non-competes hold up in NC?
Do non-competes hold up in NC?
Non-compete agreements are not viewed favorably under North Carolina law. To be valid, they must be designed to protect a legitimate business interest of the employer. If it is too broad to be considered a reasonable protection of the employer’s business, it will not be enforced.
How well do non-competes hold up in court?
According to the California Business and Professions Code Section 16600, “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” In other words, non-compete agreements are not enforceable in California.
What is a reasonable non-compete?
In contrast, in many industries, a Non-Compete with a duration of 6-months will be considered reasonable, and therefore enforceable. The general rule is that the duration of the agreement should not exceed the time reasonably necessary to protect the employer’s legitimate business interests.
What is the enforceability of non-competes in my state?
As discussed above, Non-Compete laws vary on a state-by-state basis. Some states are more lenient in their treatment of allowable Non-Competes and others are more strict. That being said, however, there are other states that don’t permit Non-Competes at all.
When do non-competes go into effect in Maine?
Finally, Non-Competes in Maine cannot take effect until one year after the employee is hired or six months after the employee signs the agreement, whichever is later.
What are the limits of a non-compete agreement?
He found that the staffing business is commoditized—there is no customer loyalty and, in fact, clients routinely retain several staffing firms at once to fill job openings. He also found it significant that information about Instant’s clients, such as the jobs they needed filled, was not confidential.
What are the effects of non-competes in business?
Often, non-competes restrict the employee or former employee from working with direct competitors, taking customers with them, or hiring staff out from under the employer. They may also restrict the employee from utilizing information that belongs to the employer, such as client lists, customer contacts, strategy documents, etc.
How long is a non-compete agreement in North Carolina?
In fact, if the two unusual cases where a ten and seven-year restriction were upheld are set aside as outliers, the average enforceable non-compete agreement in North Carolina is exactly twenty-four months.
As discussed above, Non-Compete laws vary on a state-by-state basis. Some states are more lenient in their treatment of allowable Non-Competes and others are more strict. That being said, however, there are other states that don’t permit Non-Competes at all.
When does a non-compete agreement restrict territory?
If your non-compete agreement is intended to prevent an employee from using knowledge about your customers to assist a competitor, the restricted territory should be only those areas in which the employee made contacts during his or her employment. Thus, when courts review territorial limits, they consider:
Finally, Non-Competes in Maine cannot take effect until one year after the employee is hired or six months after the employee signs the agreement, whichever is later.