Non-Competition and Trade Secrets

When Will a Court Enforce a Non-Competition Agreement?

Whether a court will uphold a non-competition agreement often depends upon the jurisdiction. Some states do not enforce them at all, while some will uphold them only in connection with the sale of a business.

In states where non-competition agreements are enforceable, courts generally will enforce a non-competition agreement when an employer can prove that a non-competition agreement is necessary to protect legitimate business interests, the agreement is reasonably limited in scope and duration, and the employee received consideration, or a benefit, in exchange for agreeing to it.