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Non Compete Agreement Questions

What is a non compete agreement?

The non compete agreement definition states that this agreement is many times planned as part of a simple employment contract that is included as a document that is reviewed and then signed when beginning employment. For the most part the non compete agreement makes sure that before being terminated the employee will not take on certain activities that will put the individual in straight competition with their other previous employer. The terms of the non compete agreement can vary and are subject to the local laws when dealing with employment. The non compete agreement is normally successful to make sure that the employees do not use proprietary information to turn away customers and damage the former employer.

Is a non compete agreement only effective in certain states and for a certain time period?

A non compete agreement is normally enforceable. The state laws and case law can sometimes limit the non compete to certain places or time limits. The non competes is ruled by the state laws. Each and every state has their only rules to understanding and ruling of the non compete agreement. The case law does change all the time that is because new cases are decided on.

In the state of Alabama if someone had signed a non compete agreement, is that agreement enforceable and what is the penalty if violated the agreement?

In the state of Alabama the court as inspected the following features when deciding on whether a non compete agreement is valid and enforceable by:
1. The employer some sort of interest;
2. The agreement must have a limit that is related to the interest;
3. The limit must be reasonable for the time and the place; and
4. The agreement must not put an unnecessary burden on the employee.

If the above is presented by the employer to the employee, and then the agreement was signed then the agreement will be enforced. When violating this agreement it would normally give the legal right to the employer for the damages from the loss of profits because of the violation.

If someone had signed a non compete agreement in three different states and there is a non disclosure agreement, will the individual have the right to provide information in another state where the agreements are not set in place?

In this case if the individual has provided confidential information that is against the agreement in any state, that person can be sued by the other party. This is because the contract that were signed in the three states, that is normally where the individual can be sure, but it would possibly stop this individual from providing any information anywhere.

If someone had signed a two year non compete agreement, and the company is facing liquidation will that individual still be required to obey that agreement or can they work for someone else that has opened a new company with the same business?

If the liquidation of the company is successful, then the non compete agreement would end along with the employment. With that being said, this now gives the employee the right to work for whoever they wish without it becoming a lawsuit between the company and that person. The old company is the only one who could enforce the agreement, and since the company is going out of business, that means that the right to enforce any agreement is no longer valid.

A non compete agreement, is where an individual signs an agreement with another person. Often times many believe that if they do not obey this agreement, there are no consequences following this matter. This is where the person is not informed properly. There are consequences when violating a non compete agreement. These consequences can vary from state to state, to find out these penalties contact the Experts online.

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Tina
Tina, Lawyer
Category: General
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Experience:  JD, BBA Over 25 years legal and business experience.
4460311
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Recent Non Compete Agreement Questions

  • A company asked us to demo our product to one of their customers.

    A company asked us to demo our product to one of their customers. They wanted us to pretend like we were part of their company. We did. The deal went no where. Now we want to pursue this ourselves. We do not have a supplier agreement in place with the company that asked us to demo or any sort of non compete agreement. Is there anything stopping us from pursuing the customer directly? We have notified the company that asked us to demo that after 18 months we do not believe there will ever be a deal with them and that we are going to pursue this on our own.
  • I had a non compete agreement with a former employer. Although

    I had a non compete agreement with a former employer. Although I had received verbal permission to go to another company (was supposed to be in writing) from the owner and have subsequent e-mails from HR detailing my intention to leave, the company has filed a non compete breach claim more than a year after my departure. The filing is in response to a breach of contract claim that I was forced to file due to a software licensing agreement that they did not honor. My question is that even if the non compete was deemed enforceable, what duties did the employer have to protect their interests at the time I left? If they were truly interested in enforcing the non compete they could have prevented me from beginning a new position but they did not.
  • I am an independent contractor. The client (in the middle of

    I am an independent contractor. The client (in the middle of the job) has asked me to sign a non compete agreement. In it, he lists 2 years for the non compete to be in effect (I will only agree to one), but he lists 4 states CA, (where he is based and where the conference that I work on is held), FL, where I live, MA and NY. I don't feel this is fair to be listing all this states. This seems very excessive, especially since I am a contractor and I never know where my next contract will be. Any advise?
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