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Where an employer claims a financial remedy or damages for breach of a restrictive covenant in an employment contract, the employer will need to show some loss resulting from the breach. This will normally be loss of profits on contracts or opportunities diverted by the employee.
Most non-compete agreements are enforceable in Kansas courts, and the courts usually do not even get involved in such matters.
From an Indian legal perspective, the Non-compete clause is prohibited under the Law of Contracts. Section 27 of the Indian Contract Act-1872 provides that - Every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind, is to that extent void.
The general position is that post-termination restrictive covenants are void on public policy grounds as being in restraint of trade, unless they are being used by the employer to protect a legitimate business interest.
This is because of its potential to be anti competitive, and therefore against public policy. Restrictive covenants are only enforceable if their effect is stringently restricted to what is essential to protect particular business relationships and information.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
compete agreement legally binds a current or former employee from competing with an employer for some period of time after employment ceases. Under such an agreement, the employee must not reveal any trade secrets learned during employment.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
California - Non-compete clauses are not enforceable under California law. However, LegalNature's non-compete agreement may still be used to prohibit the employee from soliciting customers and other employees away from the employer.