North Carolina Noncompete Agreement: What's Included and Enforceability
Quick Facts — Noncompete Agreement Lawyers
- Avg cost to draft a Non-Compete Agreement: $580.00
- Avg cost to review a Non-Compete Agreement: $350.00
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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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Jeff G.
Jeff has 25 years of commercial transactional experience within numerous industries, including finance/banking, telecommunications/utilities, insurance, and software. He is a recognized authority on contracts, software licensing and negotiation. Jeff earned his Juris Doctorate from Valparaiso University School of Law and his Masters in Business Administration from North Carolina State University and is licensed to practice law in North Carolina and Indiana.
"Jeff G. handled everything very professionally. He was quick to respond and asked all the questions he needed in order to complete my project! Amazing service and highly recommend."
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Robert W.
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Browse Lawyers NowLawyer Reviews for North Carolina Noncompete Agreement Projects
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"Robert was very helpful and responsive. I had my questions answered and had suggestions on how to make the agreement more fair. I would definitely work with Robert again."
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"Was able to answer questions and provide guidance in an effective manner, thanks Patrick!"
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Employment
Noncompete Agreement
Connecticut
Noncompete agreement and change of control?
I recently accepted a new position with a company that has requested that I sign a noncompete agreement. I understand the agreement and the limitations it puts on me, but I am concerned about how the agreement would be affected if the company is sold or changes ownership in the future. I would like to understand my legal rights in the event of a change of control.
Thomas L.
If the future company buys the equity of your current employer, the Non-Compete continues in effect. If the future company buys the assets, the Non-Compete is terminated. I would request a sentence be added to the effect that "if there is a change of control of the Company (meaning more than 50% of the equity interest or 50% of the voting equity control) is sold or transferred, then this Non-Compete Agreement is terminated.
Employee Rights
Noncompete Agreement
California
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.
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.
Employment
Noncompete Agreement
Delaware
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.
No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.
Business Contracts
Noncompete Agreement
Florida
Noncompete agreement for consultants?
I am a consultant who is looking to take on a new client, but the client requires me to sign a Noncompete Agreement. I want to make sure that I am not signing away my rights, and that the agreement is fair and reasonable. I am also interested in understanding how this agreement would affect my ability to work with other clients.
Venus C.
Hello. I appreciate your concerns about signing a Noncompete Agreement. It's essential to protect your rights and ensure the agreement is fair and reasonable given that a noncompete typically restricts competing activities during or after the term of engagement. Without knowing more about the business relationship and reviewing the actual terms, whether the non-compete is fair, reasonable, or even enforceable remains an open-ended question. Bearing this in mind, if the noncompete is preventing you from taking on other clients during or after the end of your relationship (or both), the scope of this restriction must be reasonable in terms of time, geographic area, and the specific activities it seeks to prevent. For example, does the noncompete specify the types of clients, industries, or geographic areas that are off-limits? What is the duration of the noncompete? If the client breaches your main agreement, will that render your noncompete void and unenforceable? These are just a few general questions that require a thorough review and analysis against Florida non-compete laws. Overall, the ultimate goal is to carefully review the terms to understand how they might impact your ability to take on new clients. If you don’t understand or are unsure about the contractual terms and their legal implications, it's highly recommended you consult with an attorney who can review the noncompete and provide you with personalized legal advice before you sign.
Employer
Noncompete Agreement
Florida
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.
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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