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Non Competition Agreement

Some employers may require new employees to enter into non-competition agreements before beginning work, and such agreements usually take effect after the employer-employee relationship has ended. Employers may require non-competition agreements for a variety of reasons, including protection of trade secrets or goodwill. Many times the common person will ask, “What is a non-competition agreement?” Most people are unaware of how to enforce a non compete agreement, or what the non compete agreement laws are. Read below the top five questions regarding non compete agreement questions that have been answered by the Experts.

Is a 24 month non-compete clause enforceable in Arizona?

Under Arizona law, a non-compete agreement of this type must be analyzed to determine whether it is reasonable. The burden of showing reasonableness is on the employer seeking to enforce the agreement. The employer also must show that the agreement is no broader than what is necessary to protect the employer's interests. In large part, whether it's reasonable is based on the specific facts of the case, including the type of work performed and the employee's access to information not generally available.

If someone has a non compete agreement with their employer and requested an evaluation to consider a raise , could a change in compensation from the original contract be viewed as a breach of contract if the party leaves and decided not to recognize the non compete agreement?

In order to try to argue that the non-compete is not enforceable, the employer will have to breach a term of the employment agreement first -- it can't be the employee. Even if the employer breaches it first, she/he may still be able to argue that the non-compete clause is still effective and enforceable if the employees contract includes a clause that basically says if a court declares one provision invalid, all the other clauses are still effective. The employee can always ask the employer for a release from the non-compete clause in exchange for a change in the employees compensation.

How enforceable are non-compete contracts in the state of Iowa?

Under Iowa law, it could be enforceable, but the courts tend to interpret them narrowly, which is good for the employee.

What states does the Non compete agreement hold up? Does someone need to have an up to date contract, can they change their job description, and still hold the party to a Non Compete?

Non-compete agreements are totally invalid in some states, (i.e. Montana, Nevada, North Dakota, and Oklahoma) some states consider non compete agreements invalid or in some case limited, (i.e. California, Colorado, Florida, Hawaii, Louisiana, Oregon, South Dakota, and Wisconsin.) While the remaining states consider the covenant as being at least partially valid; partially valid means the less the former employee is restricted, the more enforceable to agreement. (Ex. an agreement indicating an employee can never compete against their former employer in any state will more than likely be found invalid, yet a restriction of 1 year in an immediate area will more than likely be found valid. A non compete agreement may also have some issues that a court would conclude were invalid, while other issues were deemed to be valid.) With regard to changes in your pay or job duties, the employer must abide by the agreement in order to enforce it.

If an employee has a 5-year non-compete agreement with the company that the party sold their company to and it has compensation attached can the employee file for unemployment while still receiving this money from the non-compete?

Anyone can apply for unemployment benefits, but it is not likely the employee will receive benefits until one week after their last severance payment. Since the employer is paying the employee in increments, the unemployment agency will or have likely designated the employees severance as payment in lieu of wages/notice, such that it would be the same as wages and make the employee ineligible for benefits until the payments stop.

Non-compete agreements and the laws on the breach of a non compete agreement can be confusing for many. Experts can help with insight on the toughest questions that may arise.

Ask an Employment Lawyer

Tina
Tina, Lawyer
Category: General
Satisfied Customers: 8108
Experience:  JD, BBA, recognized by ABA for excellence.
4460311
Type Your Employment Law Question Here...
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6 Employment Lawyers are Online Now

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Employment Lawyers are online & ready to help you now

Tina
Lawyer
Satisfied Customers: 7759
JD, BBA, recognized by ABA for excellence.
Marsha411JD
Lawyer
Satisfied Customers: 10539
Licensed Attorney with 27 yrs. exp in Employment Law
Infolawyer
Lawyer
Satisfied Customers: 9785
Licensed attorney helping employers and employees.

Recent Non Competition Questions

  • This statement is verbatim from the Mississippi military department

    This statement is verbatim from the Mississippi military department employes handbook. ( a veteran status of an applicant may increase the numerical rating of the applicant. A copy of employees DD 214 is required as proof of military service.
    A total of 5 points will be added for veterans status. A total of 5 points will be added for disable veteran status. Current documentation showing percentage of disability must be included. These points will be added to the final points awarded by the president of the hiring board only and are based on a 100 point scale. Points will be prorated to 3.75 for each of the above ranges when a selection board is comprised of a 3 board members). My question is they awarded the veteran employees 5 points and the board was comprised of 3 members panel and it was on a 75 point scale. I'm i interputing this wrong or should they have recieved 3.75 points and what should I do if the points were wrongly given.
  • My original manager left before she coud preform my 90 day

    My original manager left before she coud preform my 90 day review. The new manager of only 2 weeks gave me a degrading, horrible review and said that she was going to add on a 60 day probationary period. I have spoken with my original manager and she says the new manager is lying, she does not like me. The allogations that the new manager is accusing me of have no merrit and I have documentation that the actions of allegations never took place. I was uncomfortable signing the review and told the manager this. She said you are only signing that we had a review and I went over some stuff. I want to go to HR and discuss the lack of follow up on the accusations that my manager has stated in review and show my proof( a fellow emplyee will stake claim to what happened). Can I also go to HR and say I want to add on review that I signed under duress?
  • hi need to know what to do about being fired due to filing

    hi need to know what to do about being fired due to filing a report with social security dept due to no taxes being reported to them but taken out my check for yrs 2012 and some of 2013
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