Non-compete agreements often post problems for employees looking to move to a new company within a competitive business environment. Non-competes can portend to significantly restrict your ability to work in a similar industry or start a competing business. These agreements, designed to protect employers often cause harm to that employer’s former employees. So, what can you do if you find yourself bound by one? Here are some strategies to consider:
- Read the Agreement
First things first: understand exactly what you signed. Non-competes agreements vary widely in scope and enforceability depending on your location and industry. Look at the definition of a competitor, duration of the agreement, the geographical limits, and the specific activities it prohibits. Knowing these details will help you assess your options. Generally speaking, the narrower (i.e. more specific and less restrictive) an non-compete is, the more enforceable it will be.
- Talk to a Lawyer
OK, we’re biased, but we think that seeking legal advice is crucial. A good employment lawyer can review your contract and give you real world insight not only on what is and is not enforceable, but more importantly, whether your employer will seek to enforce the non-compete in the first place. An employment lawyer can also advise you on potential loopholes or defenses you could use to challenge the agreement.
- Engage with Your Employer
Chances are, your non-compete was drafted to protect your employer – not to hurt you. It is often the case that an employer violating the non-compete causes no harm to the employer. In such circumstances, it might be wise to speak to the employer to see if you can modify the non-compete agreement. This could involve a carveout for one particular employer, reducing the scope of restrictions or shortening the duration of the agreement.
- Prove Unenforceability
To be enforceable, a noncompete agreement must be reasonable in scope and duration, necessary to protect legitimate business interests, and not overly restrictive. If your noncompete agreement is overly broad or unreasonable, you could potentially challenge its enforceability in court.
- Wait (A Little)
If challenging the agreement seems daunting or if negotiations fail, another option is to simply wait until the agreement expires, or at least until a some time has passed. Non-compete agreements typically have a limited duration, after which you’re free to pursue opportunities without restrictions. Also, many employer will lose interest in tracking a former employee’s employment after a few months have passed.
Conclusion
Navigating non-compete agreements is challenging, but not insurmountable. By understanding your rights, seeking legal counsel, and exploring your options, you can often find a path forward that allows you to pursue your career goals freely. Remember, each situation is unique, so it’s important to assess your specific circumstances carefully before taking action. With determination and the right strategy, you can break free from the constraints of a non-compete agreement and move forward in your career with confidence.
Questions? We are here to help. Please call us in New York City (646.524.6001) and Cleveland, Ohio (216.600.7994) or contact us by email any time. We will help you determine whether your agreement is enforceable, is likely to be enforced, and what you can do about it.