Noncompete


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Noncompete

A provision in a number of employment contracts that prohibits an employee from working for a competing firm for a specified number of years after the employee leaves the firm.

Noncompete

Describing a clause in many employment contracts forbidding an employee from working for another firm that competes with the employer for a certain number of years after the termination of the contract. A noncompete clause may have a geographic limit. For example, a dentist who goes to work for corporate dental practice may sign a noncompete clause forbidding him from working for a competing dental practice within 25 miles for five years after the completion of the contract.
References in periodicals archive ?
About 30 million workers--including those in low-paid jobs like sandwich maker--have noncompete clauses "and that number is growing fast," said Orly Lobel, a professor of employment and labor law at the University of San Diego School of Law.
Noncompete provisions typically limit a doctor from practicing around a certain radius for 1-5 years, but some employers may try to enforce longer time periods.
If a noncompete is unavoidable, ask yourself, 'If I were to leave this practice, what are the restrictions I could live with?
4) Courts routinely apply this "reasonableness" test when considering the enforceability of noncompete agreements governing virtually every employee and professional in the United States, including doctors, dentists, veterinarians, corporate executives, and, until the 1960s, lawyers.
Years ago, noncompete agreements were typically limited to high-skilled jobs that required "intense knowledge and high pay," Lobel said.
The retailer signs noncompetes with senior executives.
On the other hand, employees should understand their rights and what to watch for when asked to sign a noncompete agreement.
Recent changes to the financial reporting of acquisitions and combinations may affect how tax practitioners treat these noncompete arrangements, with potentially significant ramifications for both owner and purchaser.
Like most states, (1) Florida does recognize the enforcement of noncompete and nonsolicitation agreements by employers against former employees.
Some courts will routinely enjoin the departing employee from competing with the old employer simply because he or she signed a noncompete, without worrying much about the employer's legitimate interest.
State courts have been tinkering with the doctrine, a number of legislatures have considered or passed noncompete statutes, and the ALI is drafting noncompete provisions as part of its Restatement (Third) of Employment Law.