Is a non-competition agreement enforceable e if it for the entire U.S.A.?
Question:
I did not sign it and was told I can not sell their plans if I don't sign it.
Is this and enforcable agreement?
Please list any sources.
Thank you
Answer:
The most litigated issue in employment contracts is the legality of so-called "restrictive covenant" provisions, such as a non-compete clause which bars an ex-employee from going to work for a competitor. Courts are often reluctant to enforce these restrictive covenants if they impose an unreasonable hardship on the ex-employee. They are strictly scrutinized as to their "reasonableness" in light of the facts and circumstances presented in each case. First of all whether a non-compete is legally enforceable will be determined by state law (you do not mention what State you are in.) Generally the law of the state where the employee is located will apply. A contractual agreement as to which State law applies may be ineffective.
Non-competes have to be reasonable to be enforceable. Reasonableness is determined by the courts based on the specific facts in each case. Primary attention is given by the courts to:
the geographic scope of the non-compete,
the duration of the non-compete, and
the type of activity the ex-employee is precluded from engaging in.
Non-competes are more likely to be upheld if the geographic scope is smaller, the duration is shorter and the type of activity is narrower (e.g., sales position only, versus working for a competitor in any capacity). They are also more likely to be upheld if the employee is only prohibited from soliciting the employer's established customers.
Many states will void an unreasonable restriction rather than modify it. For example, if a two-year duration is specified, and the court considers this duration unreasonably long, the court may nullify the restriction entirely rather than upholding it for a shorter duration.
Overall, most non-compete agreements are not even valid and this one sounds as if it certainly isn't. To force someone not to work for ANY other discount health plan/insurance in the entire USA and for 2 years? No way. That wouldn't even stand up in court.
yes, the man who sold atari had a 5 year noncompete clause
when you sell a business there is typically a noncompete clause
they have their policies and if you wish to do business, you play by their rules
someone has obviously abused them to have this policy
You should really talk to a lawyer, most non competes can't force you to not make a living. If all you know is selling insurance then the law would probably be on your side. If you have more skills for other industries, then you would probably not have the law on your side.
In the end, most companies don't go after you if you violate. But the ones that do will tie you up in court forever.
I believe in California non-complete contracts are illegal.
Yes...it is common practice. Especially in sales.
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