North Carolina Noncompete Letter to Departing Employee
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How to fill out Noncompete Letter To Departing Employee?
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FAQ
North Carolina Court Upholds 10-Year Restrictive Covenant Between Employer and Former Employee. When one thinks of a reasonable temporal scope for a restrictive covenant between employer and employee, usually that period is measured in months or years, not decades.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
compete clause that covers a particular city and spans a period of three months, however, could be enforceable depending on the employer's industry. Although noncompete clauses are seldom upheld in court, companies will protect their interests in other ways.
Courts usually cross out the terms that are too broad, but leave the terms that are reasonable in these types of agreements. Courts will enforce very long non-competes. While agreements of one year are the most common, some employers will saddle their employees with non-competes lasting up to five years.
Generally speaking, it is hard to enforce a restrictive covenant after 20 years. The Limitation Act 1980 also states that claims in land should be brought within 12 years, within 12 years from the time the breach occurred, not when the deed came into force.
In North Carolina, courts are permitted to blue pencil restrictive covenants. This means that a court may decide not to enforce a part of the covenant that is distinctly separable in order to make the provision reasonable. However, a court is not able to re-draft an overly broad provision completely or from scratch.
As restrictive covenants don't 'expire', if they are breached the person with the benefit of the covenant can enforce them against you.
Non-compete agreements are not viewed favorably under North Carolina law. To be valid, they must be designed to protect a legitimate business interest of the employer. If it is too broad to be considered a reasonable protection of the employer's business, it will not be enforced.
Thus, North Carolina case law strongly implies that almost any non-compete agreement with a time limitation of two years or less that covers non-medical business practices will be enforced as long as the territorial restriction is not overly broad.
