Are geographical limitations allowed in non-compete contracts?

As mentioned above, a valid non-compete agreement should include a geographical area limitation. This simply means that a former employee cannot compete with the employer within that specific location.

What is a reasonable geographic limitation in a non-compete agreement?

Reasonable Geographic Limitations in a Non-Compete Agreement The law explicitly states that a non-compete or other employee contracts are not enforceable if they hinder legitimate competition between businesses or the movement and employability of otherwise skilled workers.

What is a reasonable geographic area for non-compete?

Most non-compete contracts prohibit competitive activity by the ex-employee within a certain number of miles of the employer’s business. The typical language prohibits competitive activity within a 15 to 25 mile radius of the employer’s business.

What are geographic limitations?

Most insurance policies also have a separate “geographical limit” (sometimes called “territorial limit”) which can be used to exclude claims relating to work carried out in certain locations.

Is 2 years too long for a non-compete?

Agreement is for too long a time period: For employees, a period of less than 6 months is presumed valid, and over 2 years is presumed invalid. In between, the employer will have to prove that the time period is reasonable. However, most courts will assume that agreements up to 2 years are reasonable.

How is distance measured on non-compete clause?

MYTH #6: THE GEOGRAPHIC SCOPE OF A NON-COMPETITION RESTRICTION IS MEASURED BY DRIVING DISTANCE. REALITY: Geographic distance restrictions are measured as straight-line distances or “as the crow flies.” Such measurements are now readily available from Google Earth or other GPS measurement services.

How do I get around a non-compete?

Here are five ways to beat a non-compete agreement.

  1. Prove your employer is in breach of contract.
  2. Prove there is no legitimate interest to enforce the non-compete agreement.
  3. Prove the agreement is not for a reasonable amount of time.
  4. Prove that the confidential information you had access to isn’t special.

What is a geographic segmentation in business?

What is geographic segmentation? Geographic segmentation is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs, wants, and cultural considerations.

What are economic boundaries?

Economic boundaries divide people with different incomes or levels of wealth. Sometimes these boundaries fall on national borders. The border between the developed country of the United States and the underdeveloped country of Mexico is an economic boundary as well as a political one.