The enforceability of non-compete agreements varies depending on the jurisdiction and specific terms of the agreement. In general, non-compete agreements are designed to restrict an employee from working for a competitor or starting a competing business for a certain period of time after leaving their current employer.

Some jurisdictions view non-compete agreements as being against public policy and may limit their enforceability or prohibit them altogether. In other jurisdictions, non-compete agreements may be enforceable if they are reasonable in terms of their duration, geographic scope, and the type of work being restricted.

In addition to the jurisdictional differences, courts will also look at the specific terms of the non-compete agreement to determine its enforceability. If the terms are overly broad, vague, or unreasonable, a court may find that the agreement is unenforceable.

Currently, non-competes are legal and enforceable in 47 out of 50 States. It’s important to understand yours when looking at your contract.

The restriction must meet certain criteria to be enforceable:

  1. Reasonable in its scope
  2. There must be a valid business reason to have it
  3. It must not prevent the employee from earning a living 

If you work in the State of Michigan see MCL 445.774a.

Overall, whether a non-compete agreement is enforceable will depend on the specific circumstances of the agreement and the jurisdiction in which it is being enforced. It is important for both employers and employees to seek legal advice when entering into or negotiating non-compete agreements. What is fair and equitable will be considered on a case-by-case basis. Understanding the language in your contract and the ramifications these clauses carry is imperative. 

Contact us with any questions you may have about your employment agreement.