There are various considerations that every attorney should bear in mind while counseling clients and structuring employment contracts containing non-compete provisions. As a general rule, courts will uphold non-compete agreements to the degree that they are arguably required to safeguard genuine commercial interests. They must be written and signed by all parties to be valid in North Carolina. Getting help from a non-competition agreement attorney Charlotte NC is crucial to winning your case. The following suggestions will enhance a standard non-compete agreement and raise the possibility that it will be upheld in court:
- Be familiar with your state’s disclosure laws.
Some states, but not all, demand that businesses inform new hires that a non-compete clause exists in the employment contract. In these jurisdictions, employers are not permitted to provide non-compete agreements to new hires unless they offer “valuable value” in exchange for the employee’s consent. A new job or, in the case of present employees, new employment terms like a promotion or increase might be considered. One of these states is North Carolina.
- The non-competition clause must be in the employers’ best interests as a legitimate business.
If a court upholds a non-compete clause, it will consider whether the employer has a valid business reason for doing so in its employment contracts. In such a case, the employer is likely to win if they demonstrate that having a former employee work for a direct rival will impair their business.
These provisions are frequently seen in employment contracts for roles in sales and other fields requiring specific knowledge and training.
- Geographic Restrictions Must Be Justifiable
Even though they are less frequently used, courts will almost surely examine whether any non-compete clause’s geographic restrictions are acceptable. The court will not enforce the clause if they find the agreement too broad.
- Time Limits Need to Be Reasonable
Courts will also consider the non-compete provisions’ temporal limitations. For judging the acceptability of temporal constraints, similar to geographic ones, there is no hard and fast rule, but there are certain broad principles. Five years are a restriction that North Carolina courts seldom sustain, while two years are frequently regarded as appropriate.
- Think About Potential Impacts on Public Health and Safety
It can be challenging if enforcing a non-compete agreement might harm the public’s health or safety. Medicine is one industry where this is very relevant. Creating an enforceable non-compete clause for a highly specialized doctor like a pediatric nephrologist might be challenging compared to a doctor who practices general medicine.
