Noncompete Agreements Aren’t Enforceable, Are They?
Restrictive covenants in employment agreements and employee benefit arrangements will be enforced in appropriate circumstances, but parties should be aware of varying standards from state to state, warns Jonathan Orleans for Pullman & Comley.
Orleans, writing in a post for JDSupra, says that enforcement of noncompetes can be complicated. Sometimes statutes create exceptions, and sometimes exceptions are developed through caselaw.
While courts frequently comment that restrictive covenants are “disfavored in the law,” they can be enforced if they meet certain standards.