Non Compete Clause

A recurring topic of discussion on SlashDot, typically raised when an existing employee is later asked to sign a non-competition agreement.

The question of enforceability revolves around three areas:

• duration
• geographic area
• scope of work, nature of activities

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Legislation and rulings/decisions at the various federal and state/provincial levels:

• Canada: Canadian Case Law Online (http://library.lsuc.on.ca/GL/research_law_ca_cases.htm)

• Ontario
  • "Lyons v. Multari" Reluctance of courts to enforce non-compete clauses where a non-solicit clause would suffice.
  • "Kohler Canada Co. v. Porter" Non-competition agreement not enforceable if signed after the start of employment and no additional consideration given (e.g., salary raise, promotion, etc). Continued employment does not qualify as such.
  • "Tal Global Asset Management Inc. v. Wai Ping"

• US: Employment Law Information Network (http://www.elinfonet.com/)

• California
  • Restrictive covenants are contrary to the state's public policy.

• Florida
  • "Earthweb v. Schlack" 1 year too long for IT personnel.

• Michigan
  • Michigan Non-Compete Basics (http://tcattorney.typepad.com/noncompete/)

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See Also: OverlyBroadIntellectualPropertyAgreements

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Disclaimer: IamNotaLawyer