Noncompetition Or Noncompete Agreements
A noncompete agreement is a covenant that prohibits a current or former employee from engaging in a business that competes with the employer and is typically limited to a defined geographic territory and specific time period. Since the Middle Ages, these covenants have been disfavored under the law and scrutinized by courts to ensure fairness, but, in most states other than California, they are generally enforceable if they are supported by consideration.
At the Philadelphia office of Steve Harvey Law LLC, our team of skilled business and commercial attorneys has decades of experience in litigation surrounding the validity and enforceability of noncompetition agreements. Our lawyers can help you by reviewing your options under an existing contract or representing you in litigation involving an existing noncompete agreement. Regardless of your needs, you can rely on the accumulated knowledge and experience of our team to help you navigate your case. Come and meet with a member of our team to learn your options today.
Our Team Is Adept At Navigating Noncompetition Agreements
While noncomplete agreements are legal, they still have strict standards that must be met in order for them to remain enforceable. Generally, they must include some form of consideration or compensation for the individual they are binding; they must protect or serve a legitimate business interest of the former employer; and the restrictions must be reasonable in terms of scope, time and geography. The more limited the noncompete agreement is, the more likely it will be enforceable against the signatory.
For employees, these agreements can be burdensome if they are overly broad. For example, if the geographic restriction requires the employee to travel an unreasonable distance to find new work and the restriction does not serve a legitimate interest in protecting their former employer, most courts will find this to be an unenforceable restriction. Similarly, if an agreement were to bar a former executive employee from working in the same industry for a number of years, that may be considered to be overly broad, as most protected business interests would be long since outdated.
If you are an employer, then you want to be reasonably sure that your noncompete agreement will be held enforceable, so it is important to ensure that your restrictions are well tailored to your industry requirements and the unique nature of your business. Our attorneys have spent years dealing with noncompete agreements and other restrictive covenants, so they understand how a court will view these agreements and the optimal way to approach drafting or defending such documents.
We Are Standing By To Assist You
Whether you are an employer seeking to draft a tailored noncompete agreement or an employee seeking to fight against an enforcement action, our team of skilled business litigation lawyers can help you find a solution to your legal issue. If you would like to speak with one of our commercial litigators, you can call our office at 215-907-7313, or you can send us a message online with a brief description of your situation.
Disclaimer: The law of noncompete agreements is undergoing a major change because of a recent rule proposed on January 5, 2023, by the Federal Trade Commission that, if it becomes final, would ban non-compete agreements between any employer and any employee or independent contractor. This important development is the subject of blog post on this website that should be read by anyone concerned about noncompete agreements.