Employment Law Questions? Ask an Employment Lawyer.
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Can you tell me what state this is in?
And how long was the noncompete (NC) supposed to last?
What was its geographic restriction? (i.e. 10 mile, 50, 100, etc.)
Did the buyer actually acquire the entire company, including all assets, customers, and the name?
Ok, thank you for that information...
One follow up for clarification....a non compete has a set duration, usually somewhere between a year and 3 years...
So how long was this non compete supposed to last after you ended your employment with them?
Ok, I understand that it hasn't started running yet as you are still employed. But if it has no end date spelled out in the non complete, then it presumably would last forever, and the courts won't enforce a non compete like that. It has to have a specific duration and anything under 2 years is considered reasonable. At 3 it gets questionable, and over 3, they have to prove a compelling reason for enforcing it because it can't just be to stifle competition.
There has to be a compelling reason, like confidential information or trade secrets that the former employee has that they could use against the company.
However, if there is no stated duration for the noncompete, then it would be unenforceable as written.
That is likely why they are trying to talk you into signing another one....because they have had the current one reviewed by an attorney who told them it is unenforceable due to not having an end date and would be overbroad under NH law.
You are very welcome. Glad to help any time..