Is a 1 year non-compete enforceable?

Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)

What does a 1 year non-compete mean?

In contract law, a non-compete clause (often NCC), restrictive covenant, or covenant not to compete (CNC), is a clause under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition against another party (usually the employer).

What is a reasonable distance for a non-compete?

Most non-compete contracts prohibit competitive activity by the ex-employee within a certain number of miles of the employer’s business. The typical language prohibits competitive activity within a 15 to 25 mile radius of the employer’s business.

How long do most non competes last?

A reasonable amount of time for a non-compete can be anywhere between 6 months to 2 years, and the amount of time the employer chooses will depend on the type of work and the industry.

When does a non-compete hold up in court?

In general, non-competes hold up if the candidate received something (called a “consideration”) for signing the document. If the contract was done as an afterthought, years after the employee signed it and the signature was a condition of employment, the contract might be void.

How do you manage non-competes in the recruitment process?

The most important aspect of non-competes in the recruitment process is simply fleshing out the issue and managing it early. If you ask about non-competes as a routine part of your qualification process, you and your client won’t ever be surprised.

Are there limits to a non-compete agreement?

Therefore these agreements need to be narrowly tailored to meet the needs of the enforcing party. There are no hard-set limits as to what you can and can’t do, rather, courts look at a totality of the circumstances to assess the validity of a non-compete agreement.

Do you need to know if a candidate has a non-compete?

(Some candidates may not even know if they signed a non-compete, in which case ask them to check.) If they do have a non-compete, be sure to get some clarification so that you don’t waste your time. One item to note – when talking to a candidate about a non-compete agreement, be sure not to provide legal counsel.