Stuck with a non-compete or restraint of trade clause? Here's what it actually means.
A restraint of trade or non-compete clause tries to limit what you can do after you leave a job, working for a competitor, poaching clients, starting a similar business. These clauses are common, but they're only enforceable to the extent they're reasonable, and "reasonable" is assessed carefully, not assumed.
What courts generally look at
- How long the restraint lasts, and whether that's genuinely necessary.
- How wide the geographic area or scope of work covered is.
- Whether it protects a real, legitimate interest, like client relationships or confidential information, not just competition generally.
An overly broad restraint can be narrowed or struck out entirely by a court, it isn't automatically binding just because you signed it. Send us the clause and your situation (a new job offer, a business you're starting) and we'll help you understand where you stand.
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