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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Florida NDA and NCA Review
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Employment

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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.

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Florida

Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

Read 1 attorney answer>

Employment

Noncompete Agreement

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Asked on Jun 3, 2023

Noncompete agreement and promotions?

I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.

Thomas L.

Answered Jun 16, 2023

It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.

Read 1 attorney answer>

Employment

Noncompete Agreement

New York

Asked on Jun 29, 2023

Noncompete agreement breach consequences?

I recently left my job as an employee at a company that I had worked for for over a year. I was asked to sign a noncompete agreement when I began the job, which I did. I have since started a new job in the same industry as my former employer, which is in violation of the noncompete agreement. I am now wondering what the consequences of this breach of contract may be and am seeking legal advice.

Gregory F.

Answered Jul 6, 2023

I would be happy to schedule a paid telephone consultation with you to review the non-compete agreement, advise you on its scope and enforceability, and answer your questions. Please contact me via email at greg@fidlonlegal.com to discuss.

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Asked on Jun 29, 2023

Noncompete agreement geographic scope?

I recently left my job of five years and have been offered a new position with a competitor. The new employer has asked me to sign a noncompete agreement. I am concerned about the geographic scope of the agreement and need to understand what areas it would cover, and if it would prevent me from taking a position with a competitor in another state or country.

Daniel D.

Answered Jul 25, 2023

The Courts use a reasonableness standard determine if a non-compete is reasonable in time and geographic scope. It would be necessary to see the non-compete to tell you what it says, the areas it would cover and if it would prevent you from taking another position.

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