Can I get out of a non compete agreement?

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Can I get out of a non compete agreement?

When I sold my construction business, I signed a non compete agreement. The agreement states I can not do similar business within 30 miles of where I live for 10 years. I have since filed bankruptcy and need to get back into the business to provide for my family. Is there any way I could fight the agreement?

Asked on August 16, 2016 under Business Law, South Dakota

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

In some states non-competes are unenforcaeable, unfortuantely SD is not one of them. That having been said, there are certain restrictions that your state imposeson such agreemnts. The first, is that they are only valid if they prevent employees from engaging in the same type of business as their former employer within a specified geographic area. The second restriction is that a non-compete is only valid for 2 years post-employment. This means that once 2 years has passed, a former employee is free to compete with their ex-employer. Since your agreement runs for 10 years, it appears that it is invalid. At this point, you should consult directly with an employment law attorney in your area; they can best advise you further.


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