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Do Non Compete Agreements Hold Up In North Carolina

December 7th, 2020 in by admin

On the one hand, as an employer, you can find these agreements useful to avoid losing key talent to a competitor, protect business knowledge and keep valuable accounts receivable. On the other hand, your potential employees will be concerned that these restrictions may prevent a slight relocation of employment and prove to be a difficult case if the agreement limits their employment opportunities after the termination of the employment relationship. Some states, such as California and South Dakota, prohibit the use of non-compete prohibitions as a whole, while others, such as Texas and Florida, do little to limit the use of these agreements. Special cases. What happens when the employment contract expires, but the worker works under the same conditions for a certain period of time? Does the non-competition clause survive the expiry of the written contract so that the restrictive contract begins to run after the employee`s termination, as opposed to the termination of the written contract? In North Carolina, there is a law stipulating that if, at the expiry of the written agreement, the worker continues to work for the employer under exactly the same conditions, a contract is effectively created subjecting the worker to the same obligations and restrictions as those provided for in the original written employment contract. Whether this doctrine can be extended to non-competitive restrictions is not clear. However, this is an argument that workers must respect when assessing their rights. 27. See z.B Electrical South, Inc. v. Lewis, 96 N.C. About 160, 162-63, 385 S.E.2d 352, 353-54 (Ct.

App. 1989) (do not compete with The Confederation with a time limit of 24 months for prohibiting the defendant from working for an employer within 200 miles of Greensboro); Static Control Components, Inc. v. Darkprint Imaging, Inc., 240 F. Supp.2d 465, 474 (M.D. N.C 2002) (by stating that a two-year period in itself seems reasonable in itself if viewed in combination with the global geographic restriction, the restriction is excessive). Fortunately, the courts in North Carolina will not apply non-competition clause agreements that are too broad or that impose inappropriate restrictions on your future employment and other activities. In general, they will not limit your ability to earn a living and support your family unless it is absolutely necessary to protect the legitimate business interests of your previous employer.

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