That depends. Courts often consider these factors: territorial scope, duration, nature of restricted tasks and consideration – in relation to others. For example, a large geographic area – say an entire state – may be more likely to be applicable if the duration of the restriction is short – say a month. On the other hand, a broad geographical scope associated with a long period of prohibition by a court is rather unenforceable. In examining the size of the space, the courts check the services provided by the employer. As a general rule, the court does not allow any non-competition clause preventing a worker from working in an area where the employer does not make transactions. First, find out if you`re actually breaking the term. For example, was the term used in your contract? Usually, a non-complete clause is included in your employment contract, as well as several other restrictive agreements, therefore, if you have signed the contract you have entered into. 12. I had a non-competition in my work, but I was fired. Can they do it against me when they have decided to fire me? For example, if the clause states that you cannot work within 10 miles or start a new business for a period of 6 months, and you have started a business within that time, but it is 15 miles from your old business, you would not necessarily violate it. It is therefore important that you read these terms carefully and note exactly what the limits are.
The agreement must be valid, i.e. it must meet all the criteria in order to be reviewed by a court. Among the criteria are: (a) an agreement between the two parties (b) the consideration (value given by both parties), c) both parties must be (reasonably) competent and (d) the contract must be for something legal. You signed a non-compete agreement when you entered the company. It was a multi-page contract, filled with legalese in a stack of documents that gave you the first day of work by the human resources department. Maybe someone said to you, «That`s the norm,» as you signed it. After all, it never appeared during your interview. That depends. A first look at the terms of the non-compete clause itself. Is this about resigning? Assuming he does – and says the competition is still valid, even if you are terminated — the question is: Is it legal? Here, too, the answer is this: that`s what counts. If the reason for your dismissal is an employer`s fault – discrimination, illegal employer activity or similar misconduct – most courts have ruled that a non-competition clause is no longer applicable. This is because the employer`s unlawful conduct was not part of the worker`s expectation when he accepted the non-competition clause.
If the reason for your dismissal is an employee error – presence, poor performance or similar problems – then the fact that you have been fired probably will not be so important. However, the courts may be less willing to apply a non-compete agreement if it is the employer that has decided to end this relationship, not yours. 9. Does my employer have to pay me extra money in exchange for a non-compete agreement? Before dealing with the possible consequences of the competition violation, you should first consider whether this non-competition clause is binding. Employers often take a «kitchen cap» approach in developing competition bans to deter you from any form of competitive behaviour. When the former employer managed to win, the amounts were $7,313.72 (Hagerty, Lockenvitz, Ginzkey – Associates v. Ginzkey); $49,322.50 against former employees who have their own business with trade secrets and client lists from the former employer (Cherne Indus., Inc.