North Carolina Noncompete Agreement: What's Included and Enforceability
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Is a Non-Compete Agreement Enforceable in North Carolina?
Yes. In North Carolina, non-compete agreements are enforceable as long as the contract adheres to the following requirements:
- The non-compete must be in writing under North Carolina law.
- It must be reasonable in duration and territory.
- The non-compete must be part of an employment contract.
- There needs to be valuable consideration.
- The non-compete must protect a legitimate business interest.
In addition, non-compete agreements can never be enforced against attorneys or locksmiths in North Carolina.
How Long Does a North Carolina Non-Compete Agreement Last?
The duration of a non-compete agreement in North Carolina is not set by state statute so determining how long a non-compete can last will vary case to case depending on the circumstances. Most non-compete agreements only last a couple of years but in North Carolina, agreements lasting up to five years have been ruled reasonable under extreme circumstances.
How Do You Get Around a Non-Compete Agreement in North Carolina?
To get around a non-compete agreement in North Carolina, an employee will have to prove to the court that the agreement does not meet one or more of the requirements that make a non-compete enforceable.
This is most often accomplished by proving that the duration of the agreement is too long or the territory is too large. In North Carolina, time and territory in a non-compete are viewed in tandem. The longer the agreement duration, the smaller the territory needs to be.
What Voids a Non-Compete Agreement in North Carolina?
A non-compete agreement will be void if it is not based on valuable consideration. In North Carolina, continued employment is not adequate consideration because non-compete agreements are already required to be a part of an employment contract. Additional consideration can be a promotion, a raise in pay, or the promise of advance training or schooling.
Frequently Asked Questions
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Meet some of our North Carolina Noncompete Agreement Lawyers
Brad H.
Brad is a business attorney with experience helping startup and growing companies in a variety of industries. He has served as general counsel for innovative companies and has developed a broad knowledge base that allows for a complete understanding of business needs.
"Great job from Brad. I will definitely contact him again if I need help again."
Angelica M.
Angelica McDonald, Esq. has singlehandedly established an in-demand law firm, won several accolades for her incredible work in her community and has her sights set on building a bi-coastal law practice that serves clients from her hometown to Hollywood. She is putting her city of Raeford, North Carolina on the map as the birthplace of the next legal superstar. And she is just at the onset of her career. An astute attorney, Angelica is sought after for her razor-sharp business acumen and her relentless litigation style. With a diverse background in entertainment, media and sports law, as well as business, she represents entrepreneurs and athletes on everything from complex contract negotiation to intellectual property matters, ensuring anything they’ve built is protected.
"Angelica was easy to work with and so patient with all of my questions. I would definitely hire her again."
Richard G.
Hello! I am an Iowa native trying to bring some Midwest problem-solving to southern civil law. I thoroughly enjoy getting to know the individuals and businesses I assist. I practice estate planning and business formation and, with my litigation experience in mind, I help clients plan to ensure they and their interests are protected in the future.
March 26, 2022
Neilson B.
Hi, I am the founding member of Son of Brown Law Firm, based in Charlotte North Carolina. Our firm practices in the areas of Business Transactions, Cannabis/Hemp, Personal Injury and Immigration Law.
May 5, 2022
Cindy A.
Attorney that has worked in both litigation and transactional fields. Motivated and personable professional. Speaks fluent Spanish and very basic Portuguese.
July 8, 2022
AHAJI A.
Ahaji Amos, PLLC is a Houston-based intellectual property and civil litigation firm servicing clients throughout the U.S.
September 30, 2022
Gregory D.
Gregory S. Davis is a native of New York and is a graduate of the Norman Adrian Wiggins School of Law at Campbell University. He also holds an undergraduate degree in Economics from the Wharton School at the University of Pennsylvania and an MBA from Bowie State University. Prior to entering the practice of law, Greg was a Trust officer for one of the largest U.S. Banks, an adjunct professor of finance at Meredith College and a Series 7 licensed financial advisor. Greg is currently the owner of The Law Office of Gregory S. Davis, PLLC (gsdavislaw.com) focusing on Estate Planning, Real Estate and Business Law. Greg is also an adjunct professor of Business Law at Wake Tech.
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Contracts
Noncompete Agreement
Florida
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.
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.
Employment
Noncompete Agreement
Missouri
Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?
I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?
Matthew S.
No, this at worst is a civil matter and not a criminal matter. F
Employment
Noncompete Agreement
New Jersey
Can I work for a competitor with my current noncompete?
I have ended my non competent consulting agreement with my current employee and I have an offer to work as an employer “not as consultant” with a competitor company to my privious employees so can I work as an employee without any problem? The consultant agreement says the following: Under any circumstances the consultant shall not engage directly or indirectly either as a principal agent , consultant,stock holder , partner or in any other capacity whatsoever have any other relationship with any business which compete with the company in USA.
Jane C.
I suggest that you have an attorney review the entire agreement. It is hard to comment reading a paragraph taken out of context. From the limited facts you present, it seems that you cannot accept this job offer without violating the terms of the non-compete. Disclaimer - This information is provided for general informational purposes only. No information contained in this post should be construed as legal advice and does not establish an attorney-client relationship.
Employee Rights
Noncompete Agreement
Washington
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.
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
Employment
Noncompete Agreement
New York
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.
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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