Is a non-compete enforceable?

UPDATED: Oct 1, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.

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 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.

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