Employment Law Advisors

Stuck with a non-compete or restraint of trade clause? Here's what it actually means.

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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.

Common questions

There's no fixed number, courts look at what's reasonably necessary to protect a legitimate business interest (client relationships, confidential information), not an arbitrary period. Many restraints are drafted with multiple fallback periods for exactly this reason.

Yes, enforceability is assessed if and when your employer tries to rely on it, not locked in just because you signed. An unreasonable restraint can still be struck down or narrowed by a court.

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