What happens if you break a non-compete agreement?
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What happens if you break a non-compete agreement?
I’m considering a position and they want
me to sign a non-compete agreement
saying that I can’t work within 100
miles of the company for a year after
leaving. How can the company limit an
entire career field to that extent? I’m
just wondering if this is common because
a lot of people I asked have never heard
of it.
Asked on March 15, 2018 under Employment Labor Law, Michigan
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
As a general rule, non-compete agreements are legal although various state courts have placed limitations on them regarding scope and duration. So, for example, a geographic restriction involving an entire state may not be upheld but a 100 mile restriction would. A local attorney can review the document and advise you further. If the document is legally valid, then for a breach you could be "enjoined" (via an injunction) from working in the job that violated the agreement. You could also be liable for money damages.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Non-competes are not uncommon and are enforceable. If you violate one, your former employer could sue you, seeking either or both of a court order (injunctive) prohibiting you from working in the position which violated the agreement and/or monetary compensation if they can show some loss or harm from your competition.
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