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.

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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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Jerry C.

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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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13 Yrs Experience
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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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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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Asked on Jul 6, 2023

How to draft a noncompete agreement?

I am a business owner who is looking to hire a new employee and I want to ensure that my business does not suffer from any competition that the employee might bring in the future. I need to know how to draft a noncompete agreement so that I can protect my business from any potential risks.

Daniel D.

Answered Jul 21, 2023

Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?

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Employment

Noncompete Agreement

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Asked on Jun 4, 2023

Noncompete agreement and industry restrictions?

I recently signed a Noncompete Agreement with my current employer. I am looking to explore other opportunities in my industry and want to know what restrictions my noncompete agreement might have on me. I am interested in understanding the limitations of the agreement and if there are any potential implications of taking a job in the same industry.

Danielle G.

Answered Jul 11, 2023

In order to ascertain the limitations and implications, you would need to review the specific language of the agreement. If the non-compete is very broad, it's possible it would not be enforceable. In New York, for a non-compete agreement to be enforceable, it must be for a reasonable period of time and limited geographic scope. It also must protect the employer's legitimate interest. For example, the restrictions must protect confidential information or specialized skills you gained while on the job, or some other legitimate interest. If the agreement goes beyond those limitations, a court could find the non-complete to be unreasonable and unenforceable, in whole or in part. As to what restrictions your specific non-compete imposes (and the reasonableness of those restrictions), you would need to look at the specific language in the agreement. If you are unsure about the limitations, you should seek advice of counsel to help decipher the extent it would apply to your industry in general, and the likelihood it would be enforceable in court.

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Asked on Jul 13, 2023

Can a noncompete agreement be waived?

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Thomas L.

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Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.

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Asked on Dec 5, 2024

Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?

I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?

Damien B.

Answered Dec 6, 2024

Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.

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