Signing an employment contract with a noncompete agreement may not seem like a concern during the onboarding process. Professionals may let their excitement about a new opportunity overwhelm their better judgment.
They may then face significant professional complications if they lose their job or choose to move on to different career opportunities. A noncompete agreement can leave professionals struggling to maintain their careers.
Sometimes, noncompete agreements are not enforceable due to issues with the contract. What are some of the warning signs of an unenforceable noncompete agreement?
1. Overly-broad terms
Generally speaking, noncompete agreements need to be very specific regarding the area in which they are enforceable and how long they remain in effect. Overly broad and generalized noncompetes may ultimately prove to be unenforceable.
2. An imbalanced agreement
The noncompete agreement should be part of an otherwise enforceable contract. Typically, the employee giving up their right to compete must receive something of valuable consideration in exchange. If a job offer or other compensation wasn’t provided in return for signing the agreement, it may not be enforceable.
3. A lack of need
Employers can only enforce noncompete agreements when they are actually necessary to protect the company’s legitimate interests. If the worker does not have access to trade secrets or other information that could impact the company, the agreement may not be enforceable. A line cook, for example, may not need to worry about a noncompete agreement limiting their ability to take a job with another restaurant.
Reviewing the restrictive covenant(s) in an employment contract can help professionals understand their options. Those hoping to move on to a new profession or facing enforcement actions may require legal support.
