Last Updated on December 9, 2022 by Anda Malescu
What happens if you violate a non-compete agreement under American law? Many things can happen to you if you violate a non-compete agreement including being sued but it can also be the case that nothing happens to you. Today, non-compete agreements are controversial and rather disfavored by courts and the law of most U.S. states.
So, what exactly happens if you violate a non-compete agreement? The simple answer is that if you violate a non-compete agreement that is legally valid and enforceable under state law you may end up having to pay money to your former employer. In addition, your former employer may also take legal action against your current employer for you violating the non-compete agreement. But it can also be the case that nothing will happen to you after violating a non-compete agreement because the employer does not want to enforce the agreement and take legal action against you or your future employer. Even more, there is also a possibility that you will not suffer any consequences for violating a non-compete agreement because the agreement is not even binding to begin with. All this can be alarming for someone without legal training and it is important to contact an experienced lawyer before you enter into a non-compete agreement or as soon as you believe you may be subjected to one.
In general, if you violate a non-compete agreement that is valid and enforceable under state law, it is likely that the employer (a party to the non-compete agreement) will file either a lawsuit for money damages against you for any actual losses suffered by your employer, or a lawsuit against you seeking to enforce the non-compete agreement by getting an injunction against you – that is an order from a court directing you to refrain from violating the non-compete agreement. In addition, the employer can also file a lawsuit against you for both money damages and an injunction. However, only in rare cases will a court order that you are prevented from working for a competitor for the duration of the clause.
However, the potential consequences discussed above apply only if the non-compete agreement is binding between the employer and the employee to begin with. Very often it happens that employers draft non-compete agreements with everything that can be conceived of in it, seeking to prevent you from any form of possible competitive behavior. However, instead of being more protected from competition from an employee, these employers are left with no protection at all because of their unreasonable and overbroad non-compete agreements. As a result, a non-compete agreement may not be enforceable from the outset and may not apply to you. Finally, like any contract, a non-compete is only enforceable if you receive something in exchange for signing it and you were not under duress. If any of these challenges to have merit, a court will likely not enforce its terms.
Because the potential consequences for violating a non-compete agreement can be serious and can cost you a lot of money and even for job, you should hire an experienced attorney as soon as possible. Contact us, your business attorney in Florida to assist you with your Florida non-compete agreement and discuss what happens if you violate a non-compete agreement.
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