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New Report Suggests Use of Non-Compete Agreements Is on the Rise


Posted on Jan 01, 2016

According to a new report, many firms are now requiring non-compete agreements from employees where they previously did not. The rise in the use of non-compete clauses comes about as the job market improves, giving employees more options when it comes to employment. Many companies believe non-competes improve employee retention.

Experts warn that employees who are considering making a move to a new company should carefully consider the terms of any non-compete that was signed with their current employer. Non-compete agreements typically restrict former employees from working for a competitor when they leave the company. Experts report that non-compete agreements are becoming increasingly common in the following sectors:

  • Upper management
  • Sales
  • Technology
  • Medicine
  • Service-oriented fields

If an employee breaches the non-compete agreement, he may face a legal injunction to prevent him from working for their his employer. He can also be sued for damages, especially if he “steals” clients from the former employer or shares confidential information.

Attorneys in several states report that litigation matters surrounding the breach of non-compete agreements are on the rise. Currently, most states will enforce a non-compete agreement broadly. Many, however, are introducing limitations, using proposed legislation, on when non-compete agreements can be used. Critics of non-competes and employees seeking to get out of their non-compete obligations argue that such restrictions harm the economy and prevent workers from earning higher salaries.

While most non-compete litigation issues arise after the employee has already changed jobs, some workers are being more proactive. These employees are challenging the agreements while still employed, or negotiating the terms of the non-compete more aggressively before accepting a new position.

To learn more about breach of non-compete agreements in New York, contact a New York non-compete attorney today at (888) 497-3410.

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