Does Nc Enforce Non Compete Agreements


As a professional, I have written an article on the topic of “Does NC enforce non-compete agreements?” Below is the article.

Non-compete agreements are common contracts between employers and employees that restrict the latter from working with competitors for a certain period after leaving the job. However, the enforceability of such agreements varies from state to state, and North Carolina is no exception.

North Carolina is a state that generally enforces non-compete agreements, but with certain limitations. In 2019, the state’s legislature revised the law concerning non-competes to make them more enforceable. The new law applies to contracts entered into on or after January 1, 2020.

Under the new law, non-compete agreements must meet certain requirements to be enforceable. For example, they must be in writing, signed by both parties, and include a specific time period and geographic scope that is reasonable and not overly broad. Additionally, the employer must provide the employee with a copy of the agreement at least 14 days before the commencement of employment or the agreement will be deemed unenforceable.

If a non-compete agreement meets these requirements, it is generally enforceable in North Carolina. However, there are certain exceptions where the agreements may not be enforceable. For example, non-compete agreements cannot be enforced against employees who are paid on an hourly basis or earn less than $53,000 per year. Furthermore, non-compete agreements cannot be used to prevent employees from pursuing their chosen profession or working for a company that is not a direct competitor.

In summary, North Carolina generally enforces non-compete agreements, but with limitations. Employers and employees should be aware of the specific requirements and exceptions under the state law to ensure that their non-compete agreements are valid and enforceable. Overall, it is essential to consult with a qualified attorney before signing a non-compete agreement to ensure that one`s rights and interests are protected.