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Simply put, non-compete agreements are unenforceable unless they are reasonably necessary to protect the employer and are limited to a specific physical area for a specific amount of time.
How do I challenge a restrictive covenant? Express release: It may be possible to negotiate the release or variation of a restrictive covenant. Indemnity insurance: It is possible to obtain indemnity insurance to protect against the risk of a person with the benefit of a restrictive covenant seeking to enforce it.
In most, but not all cases, a Restrictive Covenant should be listed in the Title Deeds, and will have been noted and explained by your Solicitor during the purchase process. So, you'll be aware of the potential limits on what you're able to do, or your possible obligations.
Certain restrictive covenants are illegal and void under existing law and the California Fair Employment and Housing Act.
The basic requirements for an enforceable restrictive covenant are that the agreement must: 1) be necessary for the protection of the employer; 2) provide a reasonable time period; 3) cover a reasonable territory; 4) not be unreasonable to the employee; and 5) not be unreasonable to the general public.
In certain circumstances, it is possible to find non-compete contract loopholes that may void the contract. For example, if you can prove that you never signed the contract, or if you can prove the contract is against the public interest, you may be able to void the agreement.
The Wisconsin state legislature has passed a statute that establishes the requirements for an enforceable non-compete agreement.
The basic requirements for an enforceable restrictive covenant are that the agreement must: 1) be necessary for the protection of the employer; 2) provide a reasonable time period; 3) cover a reasonable territory; 4) not be unreasonable to the employee; and 5) not be unreasonable to the general public.