The same operating agreement may prohibit ownership of another facility within 10 miles of the ASC, and may make such ownership an adverse terminating event.
Additionally, the agreement not to compete must not impose undue hardship on the employee. A clause prohibiting the employee from working for a competitor in a 10 mile radius may be acceptable, but one that prohibits him from working for any competitor in North America may not.
A typical case might involve an executive or professional. The non-competition limitation in the employment contract might restrict the employee for a period of one (1) year from engaging in competition, “directly or indirectly”, with the employer within a radius of fifty (50) miles from the company's office.
Some non-compete agreements define the scope of the agreement using existing boundaries such as city limits or county lines. Others may set a radius of miles around a central point, such as a specific job site or the company's headquarters.
Under Illinois's recent noncompete law, the $75,000 income threshold is not set to increase until 2027. As for the remaining states, a date of increase is not predetermined, and there is no reason to expect increases in 2025.
Illinois prohibits non-compete agreements between an employer and low-wage employees, including non-competes that restrict a low- wage employee from performing work in a specified geographical area, and work for another employer that is similar to the employee's work for the employer that is party to the agreement (see ...
The FTC issued a rule banning most non-compete agreements. This rule was to take effect on September 4, 2024, but a federal court concluded that the rule could not be enforced on August 20, 2024.
Proving there was a breach of your employment contract is another way that you can defeat a non-compete agreement. If your employer did not fulfill the employment contract terms, they likely can't force you to stick to a non-compete agreement. This is known as a material breach.
As a result, the rule, which was set to take effect on September 4, 2024, is void, and existing non-compete agreements remain enforceable under federal law.