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Non-Compete Agreements

FAQ's on Non-Compete Agreements

What are the legal aspects of a non-compete agreement?

The legal aspects state that a judge has the responsibility in deciding whether a non-compete agreement is valid or not. Likewise, the agreement might be taken to the court when it is right in scope and term. Additionally, it presents a balance between the interests of both the employer and an employee. Most importantly, it is quite difficult to enforce a non-compete agreement. They must get into the law and the rules must, of course, protect the company’s confidentiality and employees' careers as well.

What happens if you break the rules of a non-compete agreement?

If you infringe a non-compete agreement, which is legally binding and valid under state law, you may end up facing penalties for your business owner or employer. Moreover, your former owner or employer may take legal action against you for violating the rules and agreements. Sometimes, nothing might happen if you violate the contract, because nothing will be stated in the agreement regarding the infringement of the non-compete agreement. Therefore, it is advisable to read the agreement properly.

How long does a non-compete last?

A non-compete agreement cannot be continued forever. To get into the enforcement, the contract or an agreement must be true and reasonable. They must have a reasonable duration for the contract. It depends on the state’s decision on the duration of the contract. Generally, a non-compete agreement lasts for two or three years.

What makes a non-compete agreement void and invalid?

Voiding a non-compete agreement is done in specific situations. For example, if you can prove yourself that you didn't sign the agreement, you can explain that you didn’t sign the contract. You can even describe that it is against the public interest. Therefore, these are the ways to void a non-compete contract.

What if a person signed a non-compete agreement and he decides to start his own business?

If you have signed a contract, you should follow the rules and regulations that are given in the agreement. Once an agreement is signed, there is no other option to quit the job. Further, you could have chosen a company without any agreement or contract. So, it would be more beneficial for you to start your own business. Moreover, the rule of non-compete contracts tries to balance and support restrictions on the worker’s freedom. On the other hand, if you try to take any advantage from the owner of the company or an employer’s investment, the court will take its action and protect them.

What happens if a person is trying to compete despite a valid agreement?

Firstly, your employer can easily file a lawsuit against you for an order and cash depreciation. If the company can lead to a valid contract and sensible limitations, most of the courts will permit an order. Whereas, the litigation or suits remain the same. Furthermore, you choose a lawyer to defend the case. If the case gets completed, you can receive your money damages asked by the company. Further, it leads to the period of the lawsuits.

Another chance for the ex-employer is to threaten your new staff with an action for hurting the employee with the non-compete agreement between you and the company. If your non-compete contract is true and accurate, then a third person who makes you break the contract will face the same consequences. To avoid this situation, the company will terminate the employee and hire a new employee.