QUESTION

I signed a non compete agreement in 2002. Is it still applicable since I never was asked to renew it?

Asked on Nov 20th, 2014 on Employment Contracts - Maryland
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1 ANSWER

Appellate Practice Attorney serving New York, NY
What does it provide about expiration?  If it is part of an employment agreement which expired, it probably is not still applicable, although if you continued to work under the same terms and conditions even after the employment agreement expired, it could be implied that all terms and conditions, including the non-compete, continued to apply. If the contract did not have a specific term, however, it would not expire.  Thus, something along the lines of "Employee agrees that he will not compete with the Company for a period of two years after the termination of his employment" would not expire; it would kick in whenever you left your employment. Even if the provision has not expired, however, that doesn't mean that it is enforceable.  Courts generally look upon non-compete agreements with some skepticism, and carefully scrutinize them, enforcing them only if they are reasonably limiited and necessary to protect the employer's legitimate interests (the exact analysis differs from state to state, but that is the general gist, except in California where non-competes are unenforceable except under very limited circumstances.)  This analysis can depend on many factors, including the nature of the employee's job, the industry involved, how broad the non-compete is geographically and temporally, whether the employer spent time and money training the employee, whether the employee received additional compensation (beyond just getting or keeping his/her job) for the non-compete, etc. etc.
Answered on Nov 20th, 2014 at 5:38 PM

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