Are there standard geographical restrictions on a non compete?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Are there standard geographical restrictions on a non compete?
My non compete does not list a
specific or generic area. Am I able
to work for a like companie outside
of a specific area? Many companies
provide the same service but serve
different communities. For this
example, my HQ is 150 miles from my
home and my territory was a minimum
of 30 miles from my home. Could I
obtain another position with a like
service company as long as I do not
work the same territory?
Asked on September 13, 2017 under Employment Labor Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
No, there are no standard geographic restrictions. If the agreement contains a reasonable one (e.g. 50 miles), it will be enforced. In the absence of a specific limitation in the agreement, a court, in enforcing it (e.g. if the employer tried to take action against you) would look to the "market": does the former employer market/sell to the same pool of customers as the new employer? If so, you would be within the area or zone of the noncompete. This varies by industry: for example, I used to work in a type of educational publishing that typically had one sales rep per state. A rep who signed a non-compete could be barred from working for another company selling similar books in that entire state, since the whole state is the relevant market or territory. On the other hand, hair saloons typically draw customers from only 5 - 10 miles (at most) away in most areas; a stylist who'd signed a non-compete would typically be fine working at a salon 15 or 20 miles away.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.