How enforceable are non-compete agreements?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How enforceable are non-compete agreements?
My partner is interviewing at a few companies as an outpatient therapist. We are also starting our own company
in the same field. Two companies have made her offers but have non-competes. Are they legal in HI? If so, how are they enforced? Is there any way around them?
Asked on February 21, 2019 under Employment Labor Law, Hawaii
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Noncompetition agreements are enforceable so long as they can be shown to be reasonably necessary to the company, to prevent an employee from unfairly using information, contacts, skills, experience, etc. acquired at a company from competing against it, and are reasonably limited or tailored in duration and geographic scope (area) to accomplish that.
I am not familiar with your industry, but in supplemental educational publishing, where I used to work, a sales rep might cover an entire state. A noncompetition agreement banning him or her from working for a competiting company selling books in that state for a school year would bve enforceable, since the area (a state) and duration (a school year) would be reasonable for that purpose.
On the other end of the spectrum, while hair stylists develop loyal followings, it's typically local: people generally don't drive miles out of their way for a hair cut. And people can switch loyalty quickly. So a reasonable noncompete for a hairdresser might be no competition in a five-mile radius for 6 months.
So in short, the noncompetitions would be enforceable. The extent to which (length of time; area) depends on the specifics of your industry.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Noncompetition agreements are enforceable so long as they can be shown to be reasonably necessary to the company, to prevent an employee from unfairly using information, contacts, skills, experience, etc. acquired at a company from competing against it, and are reasonably limited or tailored in duration and geographic scope (area) to accomplish that.
I am not familiar with your industry, but in supplemental educational publishing, where I used to work, a sales rep might cover an entire state. A noncompetition agreement banning him or her from working for a competiting company selling books in that state for a school year would bve enforceable, since the area (a state) and duration (a school year) would be reasonable for that purpose.
On the other end of the spectrum, while hair stylists develop loyal followings, it's typically local: people generally don't drive miles out of their way for a hair cut. And people can switch loyalty quickly. So a reasonable noncompete for a hairdresser might be no competition in a five-mile radius for 6 months.
So in short, the noncompetitions would be enforceable. The extent to which (length of time; area) depends on the specifics of your industry.
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.