Cut city in the Free Non-Compete Agreement

Aug 6th, 2022
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How to cut city in the Free Non-Compete Agreement

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foreign employment law firm based in New York City get a ton of questions about non-competes and today in this video Im going to just quickly address what makes for an enforceable non-compete here in New York City in a word specificity here in New York in the most States frankly non-competes are only enforceable to the extent necessary to protect an employers legitimate business interest okay so they have to be reasonable with respect to duration Geographic scope what activities are are limited you know and the reason for this is courts understand that people need to make a living applying their trade its not as if an accountant you know can go stop being an accountant and make a living playing professional basketball or a lawyer can be a saxophone player these arent realistic so these are really rarely enforceable so the narrower and more specific a non-compete the more enforceable it is does it specifically name the companies that you cant work for that makes it more enforceable

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If you are an employee who has been given a non-compete clause with your Employment Agreement, it may no longer be enforceable. Employers are no longer permitted to issue non-compete agreements to their employees in Ontario.
Non-competes can be imposed in Ontario on only two classes of employees: company presidents, CFOs and other C-suite types; and anyone who sells all or part of a business and then goes to work for the purchaser as an employee.
A non-compete clause governed by Quebec laws should include three elements: a time limit, a geographic area, and a restriction on activities. If any of the three elements is missing or that the court considers unreasonable, the non-compete provision will fall and will not be enforceable.
However, employers should note that non-compete clauses are typically considered to be unreasonable restraints on trade and unenforceable. In rare cases such as this, where the non-compete was enforced, the court found the clause to be drafted in a reasonable and unambiguous way.
2089 of the Civil Code of Qubec states that the non-competition clause must be reasonable with regards to the type of prohibited work. Limitation must be to pursue a legitimate purpose, for example, to protect trade secrets or confidential information.
Non-compete clauses are invalid if they are too restrictive. Having a lengthy non-compete clause might be considered as being too restrictive unless the employer can prove that it is reasonable to have the clause be enforceable for that period of time.
Even if your non-competition agreement is valid, your former employer cannot force you to respect it. You can go work for a competitor. However, you must still act fairly and reasonably, and remain loyal to your former employer.

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