Our team of experts fields real-life, everyday questions from HR managers and gives practical answers that can be applied by any HR pro in the same situation. Today’s question: Is a nationwide non-compete agreement enforceable?
Question: We recently discovered that a potential new hire of ours is under a nationwide non-compete agreement.
We’ve never heard of anything that far-reaching before. Is it legal? Is it enforceable?
Answer:
It’s legal, says Michael Greco (mgreco@laborlawyers.com). But enforceable? That’s a more complicated question.
Most courts look less than kindly on non-competes that are overbroad — agreements that unnecessarily impede an individual’s right to make a living in their chosen field. An agreement that covers the entire United States could certainly conceivably fall into that category.
The former employer would be obligated to answer yes to this question: “Can this employee hurt you anywhere in the country?” If the answer’s yes, and the former worker has access to confidential info, for example, then the non-compete is likely enforceable.
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