Can employer require a no compete claus of employee after 5 yrs of employement
1 answer | asked Mar 8, 2010 04:59 AM [EST] | applies to Kentucky
Answers (1)
Generally not.
Though there could be rare exceptions in certain novel businesses, but generally, a no compete contract must be within a reasonable geographical location and a reasonable time period.
Typically, one year can be considered reasonable, but five years, in my opinion, is absolutely unconscionable.
Of course, I say this not knowing the nature or the facts of your business.
But as a general matter a five year non compete contract would be considered contrary to public policy and a restraint on trade; and not to mention an undue hardship on the party bound by the terms.
Sincerely,
Ryan SCott Nalley, Esq.
posted by Ryan Nalley | Mar 9, 2010 12:38 AM [EST]
Though there could be rare exceptions in certain novel businesses, but generally, a no compete contract must be within a reasonable geographical location and a reasonable time period.
Typically, one year can be considered reasonable, but five years, in my opinion, is absolutely unconscionable.
Of course, I say this not knowing the nature or the facts of your business.
But as a general matter a five year non compete contract would be considered contrary to public policy and a restraint on trade; and not to mention an undue hardship on the party bound by the terms.
Sincerely,
Ryan SCott Nalley, Esq.
posted by Ryan Nalley | Mar 9, 2010 12:38 AM [EST]
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