Katherine Doyle
Doyle Employment Law
- City
- Albany
Employment Law ยท Sub-Practice
Non-compete agreements restrict where you can work. But many are unenforceable โ and knowing which ones matters.
ยง Overview
Non-compete agreements are among the most litigated employment contracts in America โ and also among the most frequently unenforceable ones. Whether yours can stop you from working depends heavily on the state where you work.
A non-compete agreement (also called a covenant not to compete or restrictive covenant) prohibits an employee from working for a competitor or starting a competing business for a defined period after leaving an employer. Enforceability varies dramatically by state. California, North Dakota, Minnesota, and Oklahoma essentially refuse to enforce them. Most other states enforce them only if they are "reasonable" in scope โ reasonable time (typically 6 months to 2 years), geographic area (often limited to where the employee actually worked), and restricted activities (limited to the employee's actual role). Courts routinely refuse to enforce overly broad non-competes or reduce their scope through "blue penciling." In 2024, the FTC attempted a rule banning most non-competes nationwide; litigation is ongoing. The trend is strongly toward limiting enforcement.
ยง Common violations in this area
ยง How attorneys build your case
โNon-compete agreements are negotiating tools as often as legal instruments. Employers know many non-competes are unenforceable โ but employees who don't know this accept new job offers and career opportunities based on fear of a lawsuit that would never succeed. Before walking away from a career opportunity because of a non-compete, get a legal opinion. Many restrictive covenants are overbroad, signed without consideration, or governed by a law that barely enforces them. The employer who handed you the agreement at onboarding is not the authority on whether it is actually binding.โ
ยง What to look for in an attorney
ยง Ask these at your consultation
6 questions that matter
ยง Frequently asked questions
Q 01
Generally yes, if it was valid when signed. The passage of time alone does not invalidate a non-compete. However, significant changes in your role, title, or responsibilities since signing may affect enforceability. Some courts require new consideration for agreements signed during employment (not at hire). If the agreement is very old or your role has dramatically changed, it's worth having an attorney review it.
Q 02
Indemnification โ your new employer covering your legal costs and any damages โ is valuable, but it doesn't mean you'll avoid a court fight. An injunction can still prevent you from working while the litigation is resolved, which indemnification doesn't solve. Before relying on indemnification alone, understand the realistic risk of an injunction, how quickly your new employer would need to remove you from the role, and whether they have actually dealt with non-compete litigation before.
Q 03
Non-compete and trade secret claims are separate, though employers often combine them. If you took documents, databases, client lists, or other confidential information, you face potential trade secret claims under the federal Defend Trade Secrets Act and state law regardless of the non-compete. If you didn't take anything and are simply working in the field you know, the trade secret allegation is often a pressure tactic. An attorney can assess both claims independently.
Q 04
If a court issues a preliminary injunction, yes โ it can temporarily enjoin you from working for a specific competitor while the case is litigated. Courts weigh the likelihood of the employer's success, the harm to each party, and the public interest. Employers who can show that a critical employee with trade secret access jumped to a direct competitor immediately after leaving are most likely to get an injunction. Those with overbroad agreements or employees who had minimal access to sensitive information are more likely to be denied.
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