How are non-competes typically handled in real estate?

UPDATED: Oct 1, 2022

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How are non-competes typically handled in real estate?

I work for a vacation rental company that is trying to enforce a non-compete.

Asked on December 4, 2017 under Employment Labor Law, Massachusetts


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, it will be enforced. This is not actually a non-compete, which bars former employees from basically being in the same line of work as their former employer; rather, it is a non-solicitation agreement, which means you cannot do work for the specific clients, customers, etc. of your employer, at least those existing as of when the employee stopped working there. Non-solicitation agreements are much narrower than non-competes: you can compete to your heart's content, just not in terms of serving the former employer's customers. And they protect a very legitimate interest of the former employer--not having former employees take client lists and contacts, which they *only* have by dint of having worked there, and then turning around and using them against the employer. For these reasons, non-solicitation agreements are essentially universally enforced.

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