Share

NYC Litigation Blog

Friday, August 18, 2017

Increasing the Enforceability of Your Non-Compete Agreement

What makes a non-compete agreement enforceable?

Non-competition agreements can offer your business vital protections.  A non-competition agreement places restrictions on the ability of employees to work for a competitor after terminating their employment with your company.  As business owners and entrepreneurs, you likely rely on non-compete clauses to ensure key employees do not join forces with competitors or start their own competing business.  However, you may be surprised to learn that your non-competition agreement may not be enforceable.  Our New York City non-compete agreements lawyer at Thomas M. Lancia PLLC explains how you can increase the enforceability of your non-compete agreement below.  

Does the non-competition agreement protect your company’s legitimate business interests?

An enforceable non-compete agreement must protect your company’s trade secrets and confidential information, which could include your goodwill, customer lists, and the like.  To increase the enforceability of the agreement, your non-compete should specify the interests you seek to protect.

Has the employee received consideration in exchange for signing the non-compete?

Often, non-competition agreements will only be upheld if the employer can demonstrate the employee received adequate consideration in exchange for agreeing to the restrictions.  For new employees, mere employment may be sufficient.  Existing employees could be compensated in the form of a raise, promotion, or some other benefit.

Are the non-compete restrictions reasonable?

Non-competition agreements will only be upheld in court if the restrictions are reasonable in scope as required to protect your company’s interests.  A court will look to the geographic restrictions, duration, and type of restrictions.  Non-compete agreements will only be enforced if the geographical region in which the individual may not compete is no more than required to protect the interests of the company.  Agreements that attempt to prevent employees from competing across a region of several states, for instance, could be struck down.

Restrictions must be reasonable in duration, with reasonableness varying by state.  A period of several months, for example, may be enforced, but restrictions for five years would likely be struck down in most courts.  Additionally, courts will look to the scope of the restrictions.  For instance, a company that sells computers may restrict a salesperson from selling in the same space, but could not prevent them from working as a salesperson in general.  Your non-compete agreement lawyer will work with you to create an agreement that will be powerful and enforceable.  


Archived Posts

2018
2017
2016
2015
December
November
October
September
August
July
June
May
April
February
January
2014



© 2018 Thomas M. Lancia PLLC | Attorney Advertising
22 Cortlandt Street, 16th Floor, New York, NY 10007
| Phone: 212-964-3157

Business Disputes Litigation | Business Law | Civil Litigation | Company Policies & Employee Handbooks | Copyright Infringement | Employment Discrimination | Employment Litigation | Non-Compete Agreements | Purchase/Sale of a Business | Trade Secrets | Trademarks and Service Marks | Trademarks and Service Marks - Litigation and Prosecution | Unpaid Contract Disputes | Wrongful Termination | | Video FAQs | Personal Injury | Success Stories | About

Law Firm Website Design by
Zola Creative