Question

Rami Essaid worked for a large computer security firm. As part of his employment agreement, he had been told about and initialed on his contract a noncompete clause that prevented him from starting his own firm or working for a competitor in the area of computer security for six months following his termination of employment, for whatever reason. Rami quit his job and started his own firm that specializes in protecting websites from automated computer programs, the same type of work that he was doing for his former employer. His former employer has brought suit to stop Rami from operating his company for six months. Which of the following statements is correct? The noncompete clause is unenforceable because it inhibits his ability to earn a living. The noncompete clause is unenforceable because it runs for too long a time period. The noncompete clause is unenforceable because noncompete clauses are void. The noncompete clause is enforceable.

Answer 1

Unfortunately, since Rami has already signed a non-compete clause for six months following his resignation from his previous workplace, he must stop operating his business is he does not want to be sued by them. This is because (D) the non-compete clause is enforceable.

Most non-compete clause can only be challenged if Rami’s business operations or his past employers are located in a state that does not support non-compete agreements, such as California.