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Is a non-competition agreement enforceable?

Buffalo, NY |

Small company (niche), locally owned for several years and recently we bought into a franchise to expand. Highly competitive market and the new company we bought into has a non-competition agreement. We would like our managers to sign the non-competition agreement, but I worry about several things - their wages (3ok/yr. plus commission) may affect this. We are only asking that they do not compete for 12 months after employment ends (both working or ownership of similar company) and within a five mile radius of each location (6 locations in one city). We have already had one manager leave to join a competitor.

Attorney Answers 3

  1. Non-compete agreements cannot be used to prevent employees from leaving. That is what raises are for. Competition should not be feared. There is enough business for all good companies. PS-Ask your accountant for a recommendation for a good employment attorney.

  2. Yes, but only within certain reasonable limitations, and with some consideration.