Noncompete agreements, also known as covenants not to compete, help companies protect their competitive advantages. Professionals ranging from salespeople and engineers to executives may develop certain business relationships and access private information during their employment that could ultimately prove damaging for the company.
To prevent unfair competition and the release of trade secrets to competitors or the public, businesses sometimes require that professionals sign noncompete agreements when accepting new job opportunities. Many employees do not consider the implications of those agreements until the time comes to leave their jobs.
They may face challenges if they try to accept a better position with a competing business or strike out on their own by starting a new company. Is leaving the area a viable strategy to avoid noncompete enforcement?
Relocations can be a viable solution
For noncompete agreements to be valid and enforceable, they have to meet certain standards. Generally speaking, the professional must receive something of valuable consideration in return for signing the agreement.
The terms must also be reasonable and not overly broad. Typically, noncompete agreements only remain in effect for a set amount of time. They also usually only apply to a specific geographic region. Depending on the terms of the contract, relocating is one means of moving on professionally without risking a former employer filing a lawsuit to enforce a noncompete agreement.
There may be other solutions available, depending on the plans for the professional and the exact terms of the contract signed. Reviewing the details of an employment contract and the noncompete agreement it contains can help professionals protect themselves legally and financially as they prepare to make major career moves.