A non-compete agreement is simple to understand and yet can be complex. It legally prohibits an employee from joining a company or business that is a direct competitor of where they previously worked. The competitors may be mentioned by name and specified by geographical area. It also covers non-solicitation, preventing the employee from approaching the clients or customers of a former employer.
If you had signed a non-competition agreement at your former workplace, you are legally bound to abide by it. However, if you believe that the agreement is invalid in your case, you can certainly challenge it. An Employee Survival Guide can provide you with the educational and legal information you need. But, it is still recommended to speak to an attorney for additional clarity.
Legal ways to challenge a non-compete agreement
- The terms were not violated.
If your employer brings up the non-compete agreement, you can establish with evidence that your new job does not violate the terms. You can prove this by obtaining a copy of the contract from your new employer or the HR department. That is why it is important to read the terms and understand them before you sign.
- The scope of the restrictions is unreasonable.
Generally, courts will refuse to enforce a non-competition agreement if the restrictions or terms are unreasonable. For example, a clause saying that you cannot sell advertising for a period of 10 years is probably seen as “too much” or extreme. Make sure to check the non-compete and employment laws of your state so that you can understand your rights.
- The “confidential” information is available everywhere.
Employers often say that they enforce non-compete clauses to protect the company’s valuable data. However, the burden of proof falls on the company here. They must prove that the information they are trying to protect is not available anywhere else. For example, the “confidential” information should not be available online or through otherwise non-exclusive methods.
- Your employer is engaging in shady acts.
If your employer is encouraging you to do something illegal or dishonest and you can prove it, then you can challenge the non-compete clause. Your employer would not want anyone else to know that they are doing something unlawful. However, there is a way to do these things. Be careful when speaking because you do not want to sound threatening.
- Your employer has breached the contract.
Courts would not enforce a non-compete agreement that the employer itself has breached. Document evidence for which clause or term your employer has breached and determine which contractual obligations they have failed to fulfill. For example, failing to pay compensation. You can present this evidence in court and potentially invalidate the agreement.
