Noncompete Agreements In Raleigh, North Carolina

At my firm, North Raleigh Law, I assist clients in drafting and analyzing the noncompete clause and noncompete agreements. Generally, every situation is unique between the employee and employer. Drafting an enforceable noncompete, or analyzing the viability of an existing noncompete is essential — especially considering how much is at stake — either protecting the employer’s business, or allowing the employee to continue employment elsewhere. Don’t wait for litigation; review your noncompete clause and noncompete agreements before there is an issue.

Are Restrictive Covenants Enforceable?

A restrictive covenant must meet certain criteria to be enforceable. In North Carolina, this includes:

• The restriction must not violate public policy
• Inclusion in the original employment contract signed at the time of hire
• The restriction must reference a valuable consideration related to a legitimate business interest
• The time frame and geographic restriction must be reasonable

Because this is a balancing test, the analysis of whether the agreement is enforceable will vary case by case. A long time period may be enforceable where the geographic scope is very limited, and the definition of competition is very limited (and vice versa).

North Carolina courts take the following factors into consideration when judging whether restrictions are reasonable:

• The duties required in the employee’s role and their knowledge of business operations
• The type of business and its base of operations
• The size of the geographic restriction assigned to the employee
• The location where the employee worked or was subject to work

If the noncompetition agreement for an employee is found by a court to be enforceable, the employer may successfully prevent the employee from working in their industry for a reasonable time. If the agreement is unenforceable, the employer may be left with little to no protection from the employee aggressively competing with the business.

If you have any questions about your noncompete agreements, please use my contact form or call me, attorney Bob Morton, at North Raleigh Law to arrange a consultation: 919-944-4856.