Can the duration of a noncompete agreement signed in an employment agreement change in time if an employee is terminated?
Question: Can the duration of a non-compete agreement signed in an employment agreement change in time if an employee is terminated. Could a 1 year time schedule be increased to a 2 year time frame in a seperation agreement? Is the clause enforceable if the employer terminates the employee?
Answer: Is your noncompete governed by North Carolina law? (If the agreement does not specify which state's law applies, then it is likely governed by North Carolina law if you and your employer are here in North Carolina and the agreement was signed here). Assuming North Carolina law applies, then if you received a benefit to which you were not otherwise entitled in your severance agreement (such as some payment you received ONLY because you signed the severance agreement), then the noncompete term could be extended.
North Carolina courts disfavor noncompete agreements and they will only be enforced to the extent they are found reasonable in terms of the time, geographic territory, and scope of activity restricted. Two-year noncompete covenants have routinely been upheld by NC courts but whether yours is enforceable may depend on the territory in which your activities are restricted. I hope this helps, and good luck!
Answer: Is your noncompete governed by North Carolina law? (If the agreement does not specify which state's law applies, then it is likely governed by North Carolina law if you and your employer are here in North Carolina and the agreement was signed here). Assuming North Carolina law applies, then if you received a benefit to which you were not otherwise entitled in your severance agreement (such as some payment you received ONLY because you signed the severance agreement), then the noncompete term could be extended.
North Carolina courts disfavor noncompete agreements and they will only be enforced to the extent they are found reasonable in terms of the time, geographic territory, and scope of activity restricted. Two-year noncompete covenants have routinely been upheld by NC courts but whether yours is enforceable may depend on the territory in which your activities are restricted. I hope this helps, and good luck!
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