The arguments that succeed, and the conduct that undermines them.
Esshaki Legal Media TeamCurrent as of April 2023
An employee facing enforcement has more arguments than the agreement suggests.
Validity. No protectable interest; overbroad duration, geography or
activity; lack of consideration where independent consideration is required;
and statutory prohibitions.
Choice of law and forum. Where the employee resides in a state hostile to
non-competes, its public policy may displace a contractual choice, and several
states void such clauses by statute for resident employees. Filing first at home
is a recognized and effective response.
Prior material breach by the employer — unpaid compensation, a change in
role, or termination without cause where the agreement conditions enforcement.
Termination without cause. Several states and many agreements make a
covenant unenforceable where the employer terminated the relationship.
Changed circumstances. A covenant signed for a different role, years
earlier, where the employee’s function has changed.
No breach. The new role does not fall within the restricted activity, or the
customers are outside the restricted set.
Conduct that destroys the defense. Taking documents, deleting files, lying
about the new employer, and soliciting before departure. These convert a
defensible position into an indefensible one, and they are what the forensic
evidence shows.