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Why does the law disfavor noncompetition agreements?
On May 13, 2024
Employers often attempt to restrict otherwise allowable postemployment relationship competition by having their employees enter into a written noncompetition agreement in which the employees agree not to compete with the employer (or accept employment with a competitor of the employer)for some period of time after the employment relationship ends.
Such agreements are disfavored in the law because they may interfere unduly with individuals' important interests in working and making a living.Accordingly,courts tend to enforce noncompetition agreements that extend beyond trade secret protection only if their provisions restricting competition are narrowly defined in terms of duration,geographic area,and relationship to legitimate interests of the employer.Noncompetition agreements that strike the court as too broad may be ruled unenforceable.