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A Few Clouds Business Law
Q: My proposed employment agreement contains a non-compete clause. How does that affect me?
A: Courts can enforce narrowly drawn non-competition covenants that are designed to protect an employer’s “legitimate” interests and which impose reasonable limitations. A court will look at the length of the non-compete period, what restrictions are imposed (and what you are allowed to do) and the geographic restriction to determine its enforceability, as well as what interest the employer is attempting to protect. A court has the ability to re-write the restrictions to make them more reasonable for the employee. Courts can issue injunctions to enforce the non-compete, too. The less restrictive the covenant is, the more likely a court will enforce it. However, whether a court will enforce it is a very fact-intensive inquiry. You should consult a legal advisor before signing the covenant, and consider whether you have any ability to negotiate its terms.
Erica B. Garay is the Chair of the Alternative Dispute Resolution practice group and a member of the firm’s Litigation practice. She is also an arbitrator and mediator and serves on the American Arbitration Association roster of neutrals for commercial and complex litigation.
For the past fifty years, the law firm of Meyer, Suozzi, English & Klein, P.C. has created a reputation for integrity, insight and intellect that has helped establish the standard for excellence in the practice of law. With offices in Albany, Garden City, Manhattan and Washington, D.C., the firm provides legal advice in the areas of Alternative Dispute Resolution, Bankruptcy, Corporate Finance, Corporate, Criminal Defense, Disability Insurance Claims, Employee Benefits, Employment Law, Government Relations, Labor Law, Litigation, Real Estate, Tax Certiorari & Condemnation, Trusts, Wills and Estates. “Ask the Lawyer” is provided by Meyer, Suozzi, English & Klein, P.C. to inform on matters of public interest. The information contained herein is not to be construed as legal advice or opinion. We provide such advice or opinion only after being engaged to do so with respect to particular facts and circumstances.
