Noncompete agreements are valuable tools. When properly used, a
well-crafted noncompete can protect the employer from significant
harm. On the other hand, when your new hire breaches a noncompete
with his or her former employer, the liabilities can be
substantial. In recent years, noncompetes have become political
footballs in some jurisdictions, and many misconceptions have
emerged.
Probably the most common misunderstanding is that noncompetes
are no longer enforceable. Although they are restricted in a few
states, noncompetes remain generally enforceable elsewhere. The
general rule in the majority of states is that enforceability
requires the employer to prove the following (each of these factors
is case sensitive):
