Legally Enforceable?
Yes, a non-compete is enforceable if the restraint is NOT greater than is needed to protect the business’s legitimate interest; or the employer’s need is not outweighed by the hardship to the employee or the likely injury to the public.
“A court will enforce a restrictive covenant in an employment agreement to the extent that enforcement is reasonably tailored to protect a legitimate interest of the employer.”[1]
Furthermore,
“Unless the [non-compete] agreement is found to be contrary to public policy, unnecessary for [the] protection of the employer, or unnecessarily restrictive of the rights of the employee, with due regard being given to the subject matter of the contract and the circumstances and conditions under which it is to be performed.”[2]
An attorney is prohibited from entering into any agreement that restricts their right to practice law.[3]
Source: Rule 5.6 (Restrictions on Right to Practice)
The court has established that a non-compete must be “reasonably tailored to protect a legitimate interest of the employer,” and reasonableness “will vary by industry and will depend highly on the nature of the interest justifying the restrictive covenant.”[1]
An employer can use continued employment to be sufficient consideration.
A noncompetition agreement presented to an employee at any time during the employment relationship is ancillary to that relationship and thus requires no additional consideration other than continued employment.[4]