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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Contracts

Noncompete Agreement

Florida

Asked on Jul 30, 2023

Noncompete agreement and severance packages?

I recently left my job of 5 years, where I had signed a non-compete agreement. I am now negotiating a severance package with my former employer and am unsure of what my rights and obligations are regarding the non-compete agreement. I am seeking clarification on how the non-compete agreement should be handled in relation to the terms of my severance package.

Diane D.

Answered Sep 1, 2023

To be able to answer this question, I would need to see the agreements. No one can answer your question without seeing the agreements.

Read 1 attorney answer>

Employee Rights

Noncompete Agreement

Florida

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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Employee Rights

Noncompete Agreement

California

Asked on Sep 12, 2022

i work for a employer from illinois ,however i am in california. My contract has non compete clause. will that be enforceable

My employer has placed me in a position thru another vendor. My employer contract with that vendor is ending. So vendor contacted me. However I am in contract with my employer for 1 year contract.

Christopher M.

Answered Sep 13, 2022

Short answer: Probably no, non-compete and non-solicitation clauses are not usually enforceable on an employee in California. Long Answer: Regardless of the choice of law provision in your contract, if an enforcement action is brought against you in California, the California courts will dismiss it as it goes against the "public policy of the state" unless your employer can make a really compelling case. Most states respect the stated public policy of other states when deciding matters against their citizens, so even if the case was brought in another states courts your soon to be former employer would probably be powerless to get a judgement enforcing your non-compete.

Read 1 attorney answer>

Employment

Noncompete Agreement

Connecticut

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.

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Business

Noncompete Agreement

Florida

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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