Non-Competition Agreements

Non-Competition Agreements

Non-competition agreements are enforceable to protect trade secrets, confidential business information or good will if reasonably limited in time and space.
Non-competition agreements cannot be used to protect against ordinary competition.
Non-competition agreements entered into as part of a sale of a business often are enforced more liberally than non-competition agreements relating only to employment. Courts will enforce agreements which prevent sellers from competing and thereby reducing the value of the business which would cause damage to the buyer.
Employers that wrongfully fire an employee who has a non-competition agreement can be prevented from enforcing that agreement.
If the geographical or time restrictions are too broad, a court can "re-write" the agreement and enforce the "re-written" agreement on a more restricted basis.