Delaware Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers (Delaware)

Is a Non-Compete Agreement Enforceable in Delaware?

Yes. A non-compete agreement is usually enforced in Delaware as long as it adheres to the non-compete statutes set out in the Delaware Code and is reasonable and necessary to protect a company’s business interests.

The Delaware Code prohibits the use of non-compete agreements among physicians. According to the law, any contract that would restrict the right of a physician to practice medicine is void. In addition, non-compete agreements for lawyers are also enforceable.

How Long Does a Delaware Non-Compete Agreement Last?

Delaware courts will determine how long a non-compete agreement can last based on the type of work and the circumstances of the case. In the past, non-compete agreements with a one-year duration of generally ruled valid and enforceable.

How Do You Get Around a Non-Compete Agreement in Delaware?

The validity of a non-compete agreement in Delaware is determined by whether the contract is fair, reasonable, and protects an employer’s legitimate business interest. Non-competes are even enforceable if the employee is fired from their job.

To get around a non-compete agreement, an employee needs to prove that the contract is unreasonable. Courts may rule a contract unreasonable in the following circumstances:

  • The contract duration is too long.
  • The geographic boundary is too large.
  • The contract creates an unfair hardship for the employee.
  • The agreement has a negative effect on the general public.
  • The contract does not protect a legitimate business interest.

What Voids a Non-Compete Agreement in Delaware?

A non-compete agreement will be void if it violates any laws or if the court determines the contract to be unreasonable. In Delaware, courts do not practice blue penciling because it gives an unfair advantage to employers. If one part of the contract is overbroad or unreasonable, the court will not modify the contract and instead rule that the entire contract is void.

Frequently Asked Questions

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Employment

Noncompete Agreement

Washington

Asked on Jul 25, 2023

Noncompete agreement and public policy?

I recently accepted a job offer with a new employer who asked me to sign a noncompete agreement. I am concerned that the agreement may not be in line with public policy and wanted to get a professional opinion from a lawyer to make sure I am not putting myself in a difficult situation.

Merry K.

Answered Aug 8, 2023

If you are in Washington State, where I'm licensed, as opposed to D.C., please let me know what kind of help you are looking for - have you already signed the agreement? I've been a WA State attorney for nearly 38 years, and specialize in employment law.

Read 1 attorney answer>

Employee Rights

Noncompete Agreement

Washington

Asked on Jan 19, 2025

Can my employer enforce a non-compete agreement if I was laid off due to COVID-19?

Can my former employer legally enforce the non-compete agreement I signed when I was hired, considering I was recently laid off due to the economic impact of COVID-19 and the agreement seems to restrict my ability to find new employment in my field? I have been actively seeking new job opportunities in the same industry, but potential employers are hesitant to hire me due to the non-compete agreement, which restricts me from working for competitors or starting my own business in the same field for a certain period of time. I want to understand if the non-compete agreement is still valid and enforceable given the circumstances of my layoff and the current job market conditions.

Merry K.

Answered Jan 28, 2025

I'm sorry, but your question is impossible to answer without reviewing your contract and knowing more about your type of job and compensation. Be aware that terms in such agreements are often found to be non-enforceable. You can start by reviewing the Washington State law on point: https://app.leg.wa.gov/rcw/default.aspx?cite=49.62&full=true

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Washington

Asked on Jul 11, 2023

Noncompete agreement termination options?

I recently left my job after signing a Noncompete Agreement. I am looking for a new job, but I am concerned about the restrictions in the Noncompete Agreement and how it might affect my ability to find a new job. I am looking for advice on my options for terminating or modifying the Noncompete Agreement so that I can find a new job without having to worry about any potential legal repercussions.

Merry K.

Answered Aug 15, 2023

I am a WA State employment attorney. If you didn’t receive anything in return for signing the non-compete, it may be relatively easy to get out of it. If, however, you signed in return for something, such as a severance package, it will be challenging to get out of the agreement. However, many non-compete agreements are written overly broadly and may not be enforceable under the laws of WA and other states. You may want to consult with a WA State employment attorney for a review of the documents and law(s) of the state(s) where you may want to work or set up a business. (A WA State attorney can only provide legal advice in WA, but can help you find applicable law/case decisions for other states but without providing anything beyond information, much like a law librarian).

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Asked on Jul 12, 2023

Noncompete agreement and business partners?

I am a business owner who has recently acquired a new partner. We are in the process of drafting a Noncompete Agreement to ensure that neither of us will compete against each other in the same market. We are looking for advice on what should be included in the agreement and how it should be enforced.

Daniel D.

Answered Aug 4, 2023

The one thing to make sure with noncompete agreements is that it is reasonable in terms of duration and the area you cannot compete in. Courts use a reasonableness test to determine whether a noncompete agreement is valid. If provisions are deemed to be unreasonable and fail the test, they could be altered or struck out of the agreement.

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Noncompete Agreement

Connecticut

Asked on Aug 1, 2023

Noncompete agreement and change of control?

I recently accepted a new position with a company that has requested that I sign a noncompete agreement. I understand the agreement and the limitations it puts on me, but I am concerned about how the agreement would be affected if the company is sold or changes ownership in the future. I would like to understand my legal rights in the event of a change of control.

Thomas L.

Answered Aug 4, 2023

If the future company buys the equity of your current employer, the Non-Compete continues in effect. If the future company buys the assets, the Non-Compete is terminated. I would request a sentence be added to the effect that "if there is a change of control of the Company (meaning more than 50% of the equity interest or 50% of the voting equity control) is sold or transferred, then this Non-Compete Agreement is terminated.

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