Non-Compete Clause Check
AI-powered non-compete clause analysis. Check if your non-compete agreement is enforceable, overly broad, or negotiable. Get specific counter-language suggestions.
Frequently asked questions
Are non-compete agreements enforceable?
It depends on the state. California, North Dakota, Oklahoma, and Minnesota largely ban employee non-competes. Most other states allow them but require the non-compete to be reasonable in duration, geographic scope, and activity restriction. Courts in many states will narrow or void overly broad non-competes.
What makes a non-compete unenforceable?
Common reasons non-competes are unenforceable: state law prohibits them, the duration is too long (generally over 2 years is suspect), the geographic scope is too broad (national/global for a local role), the activity restriction is too wide (covers industries you've never worked in), or there was no legitimate business interest to protect.
Can I negotiate a non-compete before signing?
Yes, and you should. Common negotiating points include reducing the duration (from 2 years to 1 year), narrowing the geographic scope to your actual work area, limiting the activity restriction to your specific role and clients, adding a carve-out for companies you can name at signing, and requiring the employer to pay you during the non-compete period (a 'garden leave' clause).
What happens if I violate a non-compete?
Your former employer could seek a court injunction to stop you working, and/or sue for damages. Even if the non-compete is likely unenforceable, defending a lawsuit is expensive and disruptive. It is better to negotiate before signing or get legal advice before violating a non-compete.