Page 4 - Rules of the Road-Non Compete Agreements
P. 4
Third, what is “reasonable”? It is important to remember that
“reasonableness” depends upon the circumstances, and there is no bright line rule
about how long a non-compete can last, or how far it can reach geographically,
because both of those questions depend on whether the time or scope of the non-
compete is reasonable in light of the interest the employer is seeking to
protect. So, for example, a nationwide non-compete might be found reasonable if
the affected employee had a nationwide sales territory, while a 25 mile non-
compete might be found unreasonable for a hair stylist, whose range of influence
while employed was much smaller than that.
Because there are no bright-line rules, and every non-compete is analyzed on
its own facts, it is difficult to be certain whether any given non-compete will be
enforced. By way of example, below are some reasons courts have found not to
enforce these agreements.
No consideration: if an employee is required to sign a non-compete as a
condition of being offered a job, the job offer itself is “consideration” for the
agreement. Where, however, an employee is asked to sign an agreement after
slnlaw LLC
46 South Main Street Sharon MA 02067 781-784-2322 www.slnlaw.com
