Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in Hawaii?

Yes, non-compete agreements are enforceable in Hawaii. According to Hawaii statutes, non-compete agreements must be reasonable to be enforceable. Courts in Hawaii have developed a reasonability test to determine whether a non-compete agreement can be enforced.

Under the reasonable test, non-compete agreements will not be enforced under the following circumstances:

  1. The restrictions are greater than necessary for the protection of the employer.
  2. The agreement imposes undue hardship on the employee.
  3. The benefit of the non-compete is outweighed by injury to the public.

All employees in Hawaii are permitted to enter into a non-compete contract except for employees who work in the technology business.

How Long Does a Hawaii Non-Compete Agreement Last?

The duration of a non-compete agreement is not set by state statute. Instead, courts will look at the facts surrounding the agreement and determine what length of time is reasonable. Historically, courts have often ruled that three years or less is a reasonable duration for a non-compete agreement.

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

To get around a non-compete agreement in Hawaii, the employee will need to show that the agreement is unreasonable and fails the reasonable test created by the Hawaii courts. The non-compete agreement must serve the purpose of protecting a legitimate business interest like trade secrets or customer lists. If the sole purpose of the agreement is to limit competition, it will most likely be ruled unreasonable and unenforceable.

What Voids a Non-Compete Agreement in Hawaii?

In Hawaii, if a non-compete agreement does not have consideration, it will be void. Consideration is the part of the contract in which the parties exchange something of value. In a non-compete agreement in Hawaii, consideration is as simple as the employee’s continued employment in exchange for agreeing to the terms of the non-compete agreement.

Frequently Asked Questions

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Jeanilou M. on ContractsCounsel
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Member Since:
August 10, 2023

Jeanilou M.

Small Business Lawyer
Free Consultation
Honolulu, Hawaii
16 Yrs Experience
Licensed in HI CA
Concord Law School

Jeanilou G.T. Maschhoff has over 20 years of comprehensive business operations, finance, and development experience in addition to being a licensed attorney in California and Hawaii. She zealously works as a Trusted Advisor, Business/Brand Consultant, and Advocate for small businesses, non-profit organizations, and personal brands. She is dedicated to helping female business owners and professionals in the entertainment, beauty, fashion, and wellness industries make their goals a reality. She uses her diversified expertise to provide a holistic approach to addressing business and legal needs. Acting as a trusted advisor and outsourced general counsel, she assists on an array of business and personal matters. Passionate about social justice and assisting underrepresented populations, Jeanilou started her legal career working in the non-profit sector working towards access to justice and gender equity. She continues to assist non-profit organizations in many capacities and actively looks to partner businesses with charitable causes, creating a synergistic effect that benefits not only the organizations involved but our society as a whole. As an early adopter of the virtual practice of law, Jeanilou has been assisting law firms and solo practitioners adjust to the remote delivery of legal services and helping businesses explore Web 3.0.

Samantha P. on ContractsCounsel
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Member Since:
October 24, 2023

Samantha P.

Family Law Attorney
Free Consultation
Honolulu, Hawaii
6 Yrs Experience
Licensed in HI
William S. Richardson School of Law at the University of Hawaii

Samantha earned her J.D. at the University of Hawaii, William S. Richardson School of Law and has been a member of the Hawaii State Bar Association since 2020. Samantha has worked as a Family Law attorney in Hawaii since 2020, and has represented clients on a variety of family law matters including: premarital agreements, pre- and post-judgement custody, parenting time and child support issues, pre- and post-divorce issues, interstate custody, and paternity issues. Samantha is a certified E-RYT 200 yoga instructor, taught yoga classes at the Modern Hotel in Waikiki throughout law school, and continues to teach yoga classes at various yoga studios in Honolulu to this day.

Jerry C. on ContractsCounsel
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October 29, 2024

Jerry C.

Partner
Free Consultation
HAWAII
30 Yrs Experience
Licensed in HI
Univ. of Hawaii, W. Richardson School of Law

I have been practicing law for over twenty years. My practice includes employment/labor law, alternative dispute resolution, estate planning, business and general civil matters.

Shannon Y. on ContractsCounsel
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Shannon Y.

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Free Consultation
Kailua, Hawaii
13 Yrs Experience
Licensed in HI
William S. Richardson School of Law at UH Manoa

Attorney specializing in Family Law and Small Business Law. Georgetown and London School of Economics alum. Law Degree from UH Manoa Richardson School of Law. Small local business entrepreneur on Oahu for 10+ years.

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Lawrence A. “Larry” Saichek is an AV rated attorney and a CPA focusing on business and real estate transactions, corporate law and alternative dispute resolution. With a background including five years of public accounting and six years as “in house” counsel to a national real estate investment company, Larry brings a unique perspective to his clients – as attorney, accountant and businessman. Many clients think of Larry as their outside “in house” counsel and a valued member of their team. Larry is also a Florida Supreme Court Certified Mediator and a qualified arbitrator with over 25 years of ADR experience.

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Melissa T. on ContractsCounsel
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Employee Rights

Noncompete Agreement

Georgia

Asked on Jul 4, 2023

How does a noncompete agreement work?

I am an employee at a small business and I have recently been asked to sign a noncompete agreement. I am not sure how these agreements work and what rights I have as an employee. I am also concerned about the restrictions that could be placed on me if I sign the agreement. I want to make sure I understand the implications of signing the agreement before I do so.

Nancy B.

Answered Aug 4, 2023

In its simplest terms, a noncompete agreement in an employment context is an agreement that says you will not compete with your former employer if you ever stop working for them. It typically forbids things like: + Working for a competitor + Starting a company that sells the same services/products as your employer + Recruiting employees from your current employer after you have left that employment. One thought is that this could be requested shortly before letting an employee go just to protect the company from competition but I hope that is not the case here as it seems like an unfair use of the noncompete agreement ability in Georgia. The issues are usually the geographical scope (for example within 15 miles of Dalton, Georgia), the time period (one or two years is usually sufficient and courts do not favor long noncompete agreements), and the consideration (such as a new job - which is not applicable in your case, or more compensation). Regards, Nancy A. Burnett

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Employment

Noncompete Agreement

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).

Read 1 attorney answer>

Employment

Noncompete Agreement

Delaware

Asked on Dec 12, 2023

Employee contract, such as non compete/non solicit, could having this contract ever result in criminal/jail time?

If someone accuses you of fraud, because they believe you never had intended to honor your employment contract such as non-compete/non-solicit. Could this ever become a criminal case, resulting in criminal/jail time?

Matthew S.

Answered Dec 16, 2023

No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.

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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Business Contracts

Noncompete Agreement

California

Asked on May 21, 2023

Noncompete agreement time restrictions?

I am an entrepreneur who recently signed a Noncompete Agreement with a potential business partner, and I am looking to gain a better understanding of the time restrictions that are in place. I am concerned that the terms of the agreement may prevent me from pursuing other opportunities in the future and want to make sure I am aware of all the restrictions before making any decisions.

Gagandeep K.

Answered May 30, 2023

The non-compete agreement will likely specify the non-compete period/time restriction. If that is not obviously stated, you should consider having an attorney review the non-compete agreement. Typically, a non-compete agreement in a partnership or LLC places a geographic limitation for a certain time period such that the partner/member is prevented from carrying-on a similar business in a geographic area where the partnership/LLC has done and continues to do business. You can read more about non-compete agreements in California here: https://www.contractscounsel.com/t/us/noncompete-agreement/california.

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