The Law Office Of

Neal Jacobs

8118 Corporate Way, Suite 110, Mason Ohio 45040

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Facts About Non-Compete Agreements

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Non-Compete Enforcement Issues

What Is A Non-Compete Agreement? A Non-Compete Agreement prohibits an employee from working in competition with his former employer. The agreement normally sets forth geographic and time limits on the employee’s right to join a competing business, or to solicit former clients.

When Should A Non-Compete Agreement Be Signed? The agreement should be signed only after careful consideration of the restrictions that it places on the employee. Consultation with counsel is recommended.

Under What Circumstances Is A Non-Compete Agreement Enforceable? Courts ask whether the agreement seeks to eliminate unfair competition, or merely seeks to eliminate ordinary competition. Non-Compete Agreements amount to a restraint of trade and will only be enforced to the extent that it is reasonably necessary to protect an employer’s legitimate business interests.

What Is A Temporary Restraining Order (“TRO”)? A TRO is normally filed contemporaneously with the lawsuit and provides an expedited determination regarding the enforceability of an Employer’s Non-Compete Agreement. The TRO may prohibit the employee from working for a competitor during the litigation.

When Will A TRO Be Issued? To obtain a TRO the party seeking relief must show by clear and convincing evidence that (1) there is a substantial likelihood that it will prevail on the merits; (2) that it will suffer irreparable harm without the relief sought; (3) that issuance of the injunction will not substantially harm the employee; and (4) that the public interest will be adversely affected should the relief be denied.

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ENFORCE NONCOMPETES

THE ECONOMY IS BACK BUT SO ARE EFFORTS TO ENFORCE NONCOMPETES

For the past few years, due to a difficult economy, employees have been hesitant to dispute their noncompete agreements. With the economy improving companies are seeking to enforce noncompetes with the effect that employees are limited from testing the job market and seeking new opportunities.

noncompete agreementIf you have a noncompete agreement and wish to join a new employer; or to start a business, you should seek the advice of experienced employment counsel. Not all noncompetes are enforceable, and an appearance of counsel may cause your former employer to think before filing a lawsuit seeking to restrain you from joining a competitor.

A noncompete agreement will be enforced only if the employer can show that: (1) it will likely prevail on the merits; (2) that it will suffer irreparable harm if the noncompete is not enforced; (3) that the relief sought will not substantially harm the employee; and (4) that the public will be affected if relief is denied. Because non-competes restrain trade they are enforced only if they are necessary to protect the employer’s legitimate business interests. A non-compete will not be enforced if it merely eliminates ordinary competition.

Noncompetes are making a come back. Don’t let them limit your opportunity to market your skills and maximize your value. If you have a noncompete agreement and are thinking about leaving your employer, or starting a new business, call The Law Office of Neal D. Jacobs.
 

 

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