North Carolina Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

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:

  1. The non-compete must be in writing under North Carolina law.
  2. It must be reasonable in duration and territory.
  3. The non-compete must be part of an employment contract.
  4. There needs to be valuable consideration.
  5. 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

How do I hire a lawyer to draft a noncompete agreement in North Carolina?
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Employment

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Washington

Asked on Jul 25, 2023

Noncompete agreement and public policy?

I recently accepted a job offer with a new employer who asked me to sign a noncompete agreement. I am concerned that the agreement may not be in line with public policy and wanted to get a professional opinion from a lawyer to make sure I am not putting myself in a difficult situation.

Merry K.

Answered Aug 8, 2023

If you are in Washington State, where I'm licensed, as opposed to D.C., please let me know what kind of help you are looking for - have you already signed the agreement? I've been a WA State attorney for nearly 38 years, and specialize in employment law.

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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.

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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.

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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 May 19, 2023

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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.

Answered May 23, 2023

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.

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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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