What happens when an employee violates a non-compete agreement?

What happens when an employee violates a non-compete agreement?

However, sometimes employees violate the terms of such agreements and the business must consider how to react to this violation. A non-compete agreement is an agreement between two parties in which one party agrees not to compete against another party within the same profession or industry.

How can I get Out of a non-compete contract?

Showing that the agreement is not related to a legitimate business interest is the most effective way of getting out of a non-compete contract. The goal of any non-compete agreement is to protect trade secrets.

Can a court enforce a non compete letter?

Note that this letter is configured specifically for a violation of a written covenant not to compete. Courts often choose not to enforce such written covenants, especially if they are over broad or vague. An employer can help you assess the strength and probable scope of the restrictive covenant. Applicable documents are situation dependent.

When to void a non-compete clause in a contract?

For example, if your employment contract required that you receive a lump sum payment upon termination and your employer refused to pay this sum, you should be able to void the non-compete clause.

What happens if you violate a non-compete agreement?

Furthermore, if you violate a valid and enforceable non-compete agreement, the employer who is a party to the non-compete agreement can file a lawsuit against your new employer under state law for tortious interference with contract or business relations.

Can a fired employee sign a non-compete agreement in Florida?

Many employees think that, just because an employer forced them to sign the agreement or be fired, that they are not bound by a non-compete agreement. That’s just not true. Continued employment is valid consideration for a non-compete agreement in Florida. Florida statutes presume that non-compete agreements are valid.

Is it possible to prove a non-compete is enforceable?

In general, it is very difficult to prove that a non-compete is enforceable. A majority of cases conclude that the non-compete was unenforceable. Generally, overly broad non-competes will be unenforceable, while the narrower, upheld non-competes will only prevent the employee from soliciting or working with the former employer’s clients.

How often should you review a non-compete agreement?

If you want employees to be bound by non-compete agreements, the best course of action is to have an attorney prepare them, and to have them reviewed at least once a year for any changes necessary. An unenforceable non-compete is worse than useless – it is dangerous to the employer who tries to enforce it.