Depending on the jurisdiction, convenance not to compete can be enforceable. But, they have to be reasonable as to the scope of the restriction, the geographic area that’s being restricted and the time, or the length, the duration of the restrictive period.

Usually it’s a post employment restrictive covenant. And if they are unreasonable or found to be unreasonable, courts in some jurisdictions can revise them, calling “blue penciling” and make them more reasonable. Especially in the age of the Internet, the geographic area is always an issue.

But the safest thing to do when entering into a covenant not to compete, or restrictive covenant, is to tailor and match the restriction to what the employee actually was doing. If it’s broader than that, it might be deemed to be anti-competitive, or not made for legitimate business purpose.


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