If the restriction on the employee is for an unusually long period of time, there's going to be a problem. One to two years is typically reasonable, while three to five years is unlikely to be upheld by a court.
The following are the most common ways to get out of a non-compete agreement: Determine that the terms of the contract do not in fact prevent you from a desired course of action. Recognize when a non-compete contradicts the law. Negotiate a release agreement with the involved parties. Ignore the agreement.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
Non-compete agreements are considered civil contracts and violating them leads to civil penalties. If you break a non-compete agreement, your former employer may sue you for breach of contract.
Pennsylvania courts have generally found non-compete agreements to be enforceable if the agreement is incident to an employment relationship between the employer and employee; the restriction imposed is reasonably necessary for the protection of the employer's business interest; and the restrictions imposed are ...
Employers do enforce non-competes, but the extent varies. Some employers rigorously enforce these agreements to protect their business interests, while others may choose not to pursue legal action.
A noncompete agreement has the ability to threaten your future job prospects, prohibit you from using your hard earned skills and compromise your livelihood. Fortunately, it is unlawful for an employer to enforce non-compete agreements in California.
compete agreement is not voided if you resign or are fired. In fact, this is exactly when the company wanted this protection to apply... If you violate an enforceable noncompete, you could be sued for any actual losses suffered by your exemployer.
Under case law, non-competes will only be enforceable if they are no wider than reasonably necessary to protect a legitimate interest (e.g. protection of confidential information or customer contacts) and are not contrary to the public interest.
Non-compete agreements must be specifically limited in two distinct ways, 1) in time, and 2) in geographic area. If a non-compete clause or agreement fails to limit the scope of the contract to a specific time period and a specific geographic area, it can often be invalidated.