How often are no compete clauses upheld?

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How often are no compete clauses upheld?

Asked on August 31, 2012 under Employment Labor Law, Wisconsin

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Each non-compete clause in a written agreement stands on its own with respect to it being enforced. Almost all states in this country will not enforce a non-compete clause between an employer and a former employee on the grounds that such clause violates public policy.

The only time a non-compete clause has been upheld based upon my experience is when a person sells his or her business to another person and there is a "goodwill" provision in the document where the "goodwill" is sold for a set amount. If there is a non-compete clause in the agreement, it will be upheld in this business context.


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