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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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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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.

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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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