What are the consequences of violating a non-compete agreement?

Get Legal Help Today

 Secured with SHA-256 Encryption

What are the consequences of violating a non-compete agreement?

The prospective company is listed in the agreement as a direct competitor for which I shall work not for 1 year following termination of employment. Should I worry about this?Should I accept the offer? It’s for more money. The new employer gave me a fairly reasonable amount of time to think it over before I sign and accept the offer. They’re not sure if I should be concern about all of this. Let’s say that the company does sue me for breaking the non-compete agreement. What could happen to me? Should I take that chance?

Asked on April 25, 2011 under Employment Labor Law, Alaska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

A noncompete agreement is a contract; if you breach it, you may be sued by the other party. As a general matter, if you breach a noncompete agreement, the other party (your then-former employer) could seek a legal action to get an order barring you from working for a competitor--which means you'd then be without a job, since you would have given up a job to take the job with the competitor. They may also be able to sue you for money damages (e.g. for any losses you caused them owing to your knowledge and contacts and breach of the agreement). Not that the new employer doesn't need to fear liability--they did not sign the agreement, so worst case, they lose you as an employee but don't face anything else. Therefore they're not the ones who need to worry.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption