What are the consequences of breaching a non-compete?

In general, if you violate a non-compete agreement that is valid and enforceable under state law, it is likely that the employer (a party to the non-compete agreement) will file either a lawsuit for money damages against you for any actual losses suffered by your employer, or a lawsuit against you seeking to enforce …

Can I break a non-compete agreement?

The candidate can talk to their current employer about breaking the noncompete agreement. The employer might not actually care about the noncompete. If the employer is willing to break the agreement, the candidate should get a release signed by the employer. A judge will decide if the noncompete is enforceable.

What happens if you breach a non-compete agreement?

What new employers can do to reduce the risk of lawsuits and liability. Now we will talk about the worst-case scenario: what happens if the former employer wins the lawsuit for breach of the non-compete agreement. The most commonly sought (and most commonly granted) type of relief for breach of a non-compete agreement is an injunction.

How can I get Out of a non-compete contract?

Showing that the agreement is not related to a legitimate business interest is the most effective way of getting out of a non-compete contract. The goal of any non-compete agreement is to protect trade secrets.

What are liquidated damages in a non-compete agreement?

Liquidated damages are provided in a contract as an amount, or formula for calculating an amount, that a party will pay for breaching the contract. In this context, employers may include an amount that the employee must pay if they breach the non-compete agreement with their employer.

Is it possible to prove a non-compete is enforceable?

In general, it is very difficult to prove that a non-compete is enforceable. A majority of cases conclude that the non-compete was unenforceable. Generally, overly broad non-competes will be unenforceable, while the narrower, upheld non-competes will only prevent the employee from soliciting or working with the former employer’s clients.