North Carolina Employee Agreement with Covenant not to Compete
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How to fill out Employee Agreement With Covenant Not To Compete?
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FAQ
In North Carolina, courts are permitted to ?blue pencil? restrictive covenants. This means that a court may decide not to enforce a part of the covenant that is distinctly separable in order to make the provision reasonable.
Legitimate Competitive Interest: A company must have a legitimate competitive interest that the agreement serves to protect, like trade secrets or proprietary information. Limited Duration: A noncompete clause can't last indefinitely.
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.
Non-compete agreements are enforceable in most states, but they must be reasonable, not overly restrictive, and often must serve a legitimate purpose for the employer. If you ignore a non-compete agreement, you risk being sued by your former employer.
In general, as long as the terms of the non-compete are reasonable and not overly broad, the non-compete will be enforced. However, enforceability varies by state. North Carolina courts generally do not favor non-competes.
Covenants not to compete are frequently enforced to prevent a former employee from soliciting his or her former customers to buy competing products or services from the new employer.
The well-known general rule is that a covenant not to compete is only enforceable if its terms are reasonable and necessary to protect the legitimate business interests of the employer.
California law bars covenants not to compete in nearly all circumstances.
