Eli5: how exactly can companies enforce non-compete contracts? How is it their business what company you go to, and how would they even know?
In: 11
Having been on a team in the middle of a
non-compete negotiation, much of it is a voluntary contract.
The company will pay you X dollars for X time period, during that time we are paying you, you’re are not allowed to work for companies in the following industries.
The way they “enforce” it is if you breach your contract that they paid you for. So they can claw that compensation back and maybe also additional dollars.
Obviously, they can all be different, but judges and most state laws are VERY reluctant to enforce blanket non-compete’s that employees have to sign to work at a company. A paid contract though is very different.
Some people say this is why Silicon Valley became Silicon Valley, non-compete’s didn’t really work in CA because of their laws. But in a state like Massachusetts’ (where early on there was a big tech presence) they actually enforced them. Was a brain drain to Silicon Valley.
Latest Answers