Page 67 - Microsoft Word - Updated Book Draft 2 23 2017 (1)

Material change in job duties or compensation: if

an employee’s duties or compensation change materially

during his or her employment, those changes may

invalidate the original non-compete, if a court determines

that there is essentially a new employment relationship

that requires a new non-compete.

Overbroad terms: it might be tempting for an

employer to reach as broadly as possible in defining the

post-employment restrictions, but that comes at a risk of

a court finding that it is not necessary to protect a

“legitimate business interest.” For example, restricting

an employee from working for a competitor for over two

years, or nationwide when his or her duties were

primarily local, would probably be found overbroad.

Similarly, defining “competitor” more broadly than

necessary to protect the employer’s legitimate interest

63| Rules of the Road