Are Non-Compete Agreements Enforceable?

Schurman Ackermann, PLLC > Uncategorized > Are Non-Compete Agreements Enforceable?

The short answer is YES!  However, it is a buyer beware market.  In other words, as an employer, you generally will get what you pay for.  If you draft it yourself or perhaps pull one off the internet you will be exposed to that Non-Compete being dissolved by a Court.

The whole purpose of the Non-Compete is to allow the business owner to take the risk of cost of training and informational divulgence out of the equation.  You want to be able to sleep at night and not have to worry about a key employee deciding he can do it better and cheaper than you.  Thus, the seed of unfair competition arises.

The Non-Compete must be valid and reasonable. The Court looks to multiple factors as to what makes it valid and reasonable.  These factors are somewhat ethereal and require a professional to look at the totality of the factors you want to put in your agreement.

The final point to touch on is the consideration given for the agreement.  Remember this is a contract and will be treated as such by the Court.  So, you must pay careful attention to the consideration given and the timing of the consideration.

An attorney can draft a Non-Compete agreement that will meet your needs in one to two hours of time.  Is it worth the sleep you will gain at night?  Absolutely.

I have a client who enforced a Non-Compete we drafted.  The Judge awarded over $100,000.00 in damages.  The Judgment hangs in the main offices for all to see to this day.