Is a non-compete enforceable?
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Is a non-compete enforceable?
I am an insurance agent and just took a job with a local insurance agency. I’m an employee of the agency, not the parent company. The non-compete agreement states that I cannot sell any other line of insurance for any company, anywhere, as it may be harmful to the company them. I’m also certified to sell Medicare policies, which the company/agency does not offer. I told the agency owner I wanted to continue to sell Medicare but would do so in my own time, generating my own leads and not utilize the agency customer database. She said she was fine with that. The non compete, of
course, is drafted by the parent company and I don’t believe her approval would supersede that agreement, especially since I don’t have her approval in writing. Can they enforce the part of the
agreement that says I cannot sell any other type of insurance Medicare, even though they don’t offer it directly or through an agreement with any other carrier?
Asked on December 9, 2017 under Employment Labor Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
This agreement is enforceable, since as you describe it, it is a limitation on what you can do while still employed. Employers have extremely broad discretion to limit what their employees can do while they are employed by them, and can forbid any and even *every* other economic activity: i.e. you could be forbidden from having any second or side jobs, even driving Uber. This agreemet is enforceable.
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