Non-compete agreements are often a standard contract that employers require employees to agree to. Generally, it stipulates that an employee cannot gain information from their employer and then use the information in service of another business. This protects a company’s trade secrets and other proprietary information from potential exploitation by another business in the same sector.
There are a number of reasons, however, why you might need to nullify such an agreement. Perhaps your non-compete prohibits you from establishing your own company or seeking employment elsewhere. The following are three of the most common reasons why this contract may be invalid.
1. Time or location limits
Non-compete agreements cannot reasonably be unconditional. If an agreement indicates that you cannot work for a competitor, for example, there is typically a time limit on this restriction. Sometimes a geographic limit is in place, too, limiting the restrictions to a certain area. In either case, engaging competition outside of the specified time or location would deem the contract’s terms inapplicable.
2. No legitimate business interest
In order to be valid, a company must base a non-compete agreement on the protection of a legitimate business interest. An employer cannot restrict you simply for the sake of limiting your actions. According to the Tampa Bay Tribune, legitimate business interests may include maintaining sensitive client information or protecting investments such as special training and educational compensation.
3. Breach of contract
Many employers forget that a contract is a two-way agreement, and if one side violates the terms, it might render the contract invalid. Of course, employers will quickly make note of an employee’s violation of a contract, but employees should likewise be attentive to their employer’s adherence to the terms of the non-compete agreement. A violation on the company’s part would likely constitute a breach of contract and free you from its stipulations.
