Josh wants to ensure that anyone employed by his Florida-based startup won't leave to start their own competing businesses. He requires new employees to sign a non-compete agreement and stipulates Florida as the forum selection clause. One employee has challenged the non-compete in her place of residence in New York. The New York courts have found that the non-compete is inconsistent with New York law. This means that.

Question

Twinkle

Business

2 January, 19:17

Josh wants to ensure that anyone employed by his Florida-based startup won't leave to start their own competing businesses. He requires new employees to sign a non-compete agreement and stipulates Florida as the forum selection clause. One employee has challenged the non-compete in her place of residence in New York. The New York courts have found that the non-compete is inconsistent with New York law. This means that.

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Answers (1)

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Blake Mckee · Answer 1

A) All, or some aspects of the non-compete will not be enforced

Explanation:

To be legally enforceable, a non-compete agreement is required to:

Be ancillary to some other agreement : an employment contract is necessary, if not the non-compete has no reason to be. Supported by adequate consideration : the non-compete clause or agreement must include some type of compensation for the employee that accepts the agreement, if not, only the business is gaining with it. Designed to protect a legitimate interest: the non-compete must protect some type of trade secret or business reputation, but it cannot be made just to restrict competition.

In this case, the company is based in Florida, but the former employee lives in New York, so the new entrepreneurship shouldn't be a direct competitor. That would result in the lack of a legitimate interest.