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<< Back to FAQ/Fact list Q: How can I maximize the chance of having a non-compete agreement enforced by court? A: Though there are a few states like California that do not enforce non-compete agreements, most courts will enforce one if it is reasonable in terms of duration, scope and geographic region. The first issue to consider is whether or not there is a legitimate business need to have a non-compete agreement. Courts have viewed such things as protection of trade secrets, relationships with specific customers, patients or clients, ongoing goodwill associated with businesses, geographic location or marketing/trade areas as providing legitimate business need for an agreement. Some courts have allowed non-compete agreements in cases where an individual received specialized training. If there is legitimate business need, the reasonableness of the agreement will then come into consideration. Most courts view one year, no more than three (though one is more accepted), agreements are fair if they are not too limiting as to where the individual can go to find employment. This ties into the geographic scope. Limiting the individual by saying you cannot work anywhere in the United States would not be enforceable. Though there is no set mile radius, any area as small as the town to as large as the whole state has been found to be enforceable. Finally, a reasonable scope gets into what specific work is not allowed to be done by the individual bound by a non-compete. If an individual could go to work for a competitor without divulging anything, restricting this employee would probably not be considered reasonable. The reasonableness in time, scope and geographic location ultimately maximizes your chances of having your covenant not to compete enforced by courts. Ultimately, legal counsel should be used to protect yourself should you choose to use a non-compete. Also see question seven for additional information.
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