17. Our company was acquired by another company, and we are now told that we are subject to non-compete agreements. Can the new employer enforce the agreement against us? 15. I left my old company to take a job in a new company. The new company did not tell me that I had a non-compete agreement until I had already left my old job. Does that mean I`m stuck in this? We sometimes hear that non-competition bans are unenforceable. Don`t believe it. They are usually. Besides, even if you were to go to court, who would want to go to court? At best, this would lead to a Pyrrhic victory. In most countries, the answer is yes. Most states provide a mechanism to test the applicability of a treaty.
This mechanism is called declaratory judgment. Depending on the availability of this remedy in your state and the tactics involved in each situation, it may be helpful for the employee to bring a declaratory judgment action asking the court to decide whether the agreement is binding. There are many practical and tactical considerations in deciding whether, as a collaborator, you should introduce a declaratory judgment action that asks a federation not to compete. There is no consistent response to this problem. A non-compete clause may also prohibit employment in a given region of the country. A non-compete clause almost always prohibits the former employee from working on similar products, developing them or setting up a competing business without the former employer having reached an agreement. Current staff may also be asked to sign a non-competition agreement late. This is a more difficult situation since the employee already has an evaluated item: the job.
What else can the employer offer? It sometimes turns out, nothing, as in the following example. What are the reasons why the courts consider a non-competition agreement to be appropriate? Even if you are not in the labour market right now, you should pay some attention to the increasing pressure on employees to sign competition bans. You may argue with a new non-compete clause if you get a raise or promotion. Or you are asked to sign one for severance pay if you are fired. A non-compete agreement is a contract that prohibits a worker from working or becoming a competitor for a certain period of time. In general, a non-competition agreement that is not too restrictive in terms of the duration and level of the area covered is more applicable.