Noncompetition agreements are enforced when the working relationship ends between employers and employees. The enforcement of this agreement is done for the prevention of employees from any competition in the new position. The competitive situations can be getting hired by competitors in the same market, initiating a new business venture in the same market, recruiting previous employees of the company to leave, etc. for more information, contact a Charlotte non-competition agreement attorney.
The non-competition agreement required to fulfill certain requirements to be eligible for enforcement. A legal expert must review the noncompetition agreement so lawyers can check if it is not dangerous or harmful to the employee’s rights.
Along with that, the enforcement criteria for a non-competition agreement can differ depending on the location. These agreements are also faced with state jurisdiction in the country. The process of recognizing and enforcing a noncompetition agreement depends on the type of state, as some states allow their enforcement while others do not.
Reasonability of non-competition agreement
Noncompetition agreements are required to be reasonable as it is one of the standards set by the states for their enforcement. There is a certain limitation on an employee’s ability to find employment, the geographic scope and time limit, etc. The employers are allowed to prepare a non-competition agreement with realistic and practical restrictions. They cannot stop ex-employees from progressing in their particular fields. They are required to work with the guidance of lawyers to ensure that the non-competition agreement is reasonable and meets the state standards requirement.
Other than that, jurisdiction is dependent upon the interpretation of a noncompetition agreement as some people deem it overly limiting or onerous for the employees.
Need for Consideration
A Noncompetition agreement is non-enforceable if it lacks consideration. Consideration is a legal term that implies value exchange. Consideration for newly recruited employees can be the statement that the desire to hire the employee is being exchanged with the new employee’s agreement regarding non-competition. However, if a non-competition agreement is prepared for an old employee, there is a requirement to include additional consideration for enforcing the agreement.
The Consideration is not necessarily of high value. However, there must be certain benefits associated with it that must be provided to the employee. The benefits or considerations to existing employees can be changing work status, increased salary, increased work benefits, change in job title, etc.
