A recurring topic of discussion on
SlashDot, typically raised when an existing employee is later asked to sign a non-competition agreement.
The question of enforceability revolves around three areas:
- duration
- geographic area
- scope of work, nature of activities
Legislation and rulings/decisions at the various federal and state/provincial levels:
- Canada: Canadian Case Law Online (http://library.lsuc.on.ca/GL/research_law_ca_cases.htm)
- Ontario
- "Lyons v. Multari" Reluctance of courts to enforce non-compete clauses where a non-solicit clause would suffice.
- "Kohler Canada Co. v. Porter" Non-competition agreement not enforceable if signed after the start of employment and no additional consideration given (e.g., salary raise, promotion, etc). Continued employment does not qualify as such.
- "Tal Global Asset Management Inc. v. Wai Ping"
- US: Employment Law Information Network (http://www.elinfonet.com/)
- California
- Restrictive covenants are contrary to the state's public policy.
- Florida
- "Earthweb v. Schlack" 1 year too long for IT personnel.
- Michigan
See Also:
OverlyBroadIntellectualPropertyAgreements
Disclaimer:
IamNotaLawyer