What Happens If A Non-Compete Agreement Is Breached?

Non-Compete Agreement Lawyer

business lawyerThese days, many businesses are forced to take the necessary legal steps to protect themselves from unfair business practices. One of the most common steps is to have employees sign non-compete agreements. Many new hires find themselves in the position of landing their ideal dream job but then be told that in order to get the position, they must sign an agreement where the employee will be restricted on where they can work in the future should they no longer work for this company.

Fast forward to the future, while it seemed like a good idea at the time, now that employee wants to leave for an even better opportunity with another company, they realize taking that position would violate this agreement. What should they do? Do they risk breaking the non-compete or pass up the new opportunity? If you find yourself in this situation, you should consult with a business non-compete agreement lawyer before taking any action.

Informing the New Employer

Some employers decide to act on enforcing a non-compete once they discover a breach. It usually begins with a letter to the employee and new employer, reminding both of the terms of the agreement. In this case, you may find yourself out of the dream job if you didn’t disclose the non-compete or if the new employer can fire you for any reason. The laws of the state you live in will dictate in most cases.

Action by the Previous Employer

Aside from getting you fired by the new employer, your prior employer may choose to take legal action against you for violating the agreement. While this is rare, it can and does happen. Therefore, you need to be prepared for the lawsuit.

This is why it is critical to consult with a lawyer who has extensive experience with non-compete agreements in order to determine what legal options you may have should your prior employer decide to file a lawsuit against you. There may be flaws in that agreement that can help nullify it. For example, one of the quickest ways to strike down an action for breach is proving that the company itself has previously breached the agreement. Your lawyer will evaluate your work history with the company to determine if this is a viable defense in your case.

Contact a Business Law Firm

If you have been offered employment but with the stipulation of signing a non-compete agreement, you want to make sure you have a lawyer look over the document first. If you had previously signed an agreement and are now being accused of violating that agreement, contact an experienced attorney, like a business non-compete agreement lawyer from the Law Group of Iowa.

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