Legally Enforceable?
Yes, a non-compete is valid if reasonable and passes the three-pronged test.
A court will decide whether to enforce a non-compete by applying the following:[1]
- If the restriction is reasonably necessary for the protection of the employer’s business;
- If it is unreasonably restrictive of the employee’s rights; and
- Is it prejudicial to the public interest.
An attorney is prohibited from entering into a non-compete agreement that restricts their right to practice law in the State.[2]
A non-compete is unenforceable on a franchisee if their license to operate has been canceled or not renewed by its operator.[3]
Maximum Term
3 years is deemed a reasonable timeframe.[6]
Blue Penciling Allowed
Otherwise known as the “partial enforcement doctrine,” a court may not rewrite a non-compete that the parties did not make for themselves. The purpose is to interpret the intentions of both parties, if they are the same, and apply as intended.[7]