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ARTICLE · 12 JUNE 2015

Non-Compete Clauses: Don't Make Your Non-Compete Clauses Non-Enforceable

Klein Moynihan Turco LLP
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The reasons for this judicial approach to non-compete clauses is simple: courts are reluctant to enforce obstacles to an individual finding gainful employment.

United StatesEmployment and HR
David O. Klein
David O. Klein
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Earlier this week, two U.S. Senators, Chris Murphy (D-Conn.) and Al Franken (D-Minn.), announced plans to introduce a bill that would ban companies from asking employees that make less than $15 an hour (or $31,200 annually) to agree to non-compete provisions that would hinder those employees' efforts at securing subsequent employment.

The prospective bill would seek to address the practice of requiring low-wage, low-skilled workers to agree to overly-broad non-compete provisions. For example, evidence has surfaced that ". . . Jimmy John's sandwich shops requires some of its low-wage workers to sign two-year non-compete agreements prohibiting them from working at retail stores that make at least 10% of their sales from sandwiches."

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