Category: Trade Secrets

Is My Non-Compete Enforceable?

9/3/2026

By Associate Attorney Ashley N. Bonomini

If you’ve ever signed an employment agreement, it may have included a restrictive covenant. Restrictive covenants can include agreements not to compete with a former employer or business for a certain period of time after leaving a job (a “non-compete”), an agreement not to solicit former customers or current employees of a former employer or business (a “non-solicitation” agreement), or agreements not to use or divulge proprietary or confidential information of a business learned through prior employment (a “confidentiality agreement”).

Although non-competes are no longer valid or enforceable in some states, North Carolina still permits reasonable non-compete agreements when they are narrowly drafted and designed to protect a legitimate business interest. In general, a non-compete must be in writing, supported by adequate consideration, and reasonable in its duration, geographic scope, and the activities it restricts.

North Carolina law does not establish a specific maximum duration or geographic area for non-competes. Instead, the restriction must be reasonable considering the employer's business and the employee's position on a case-by-case basis. For example, a local business would have difficulty justifying a restriction covering the entire state.

Non-competes should be carefully tailored to protect the employer's actual legitimate business interests. Protecting customer relationships, confidential information, trade secrets, and business goodwill can be legitimate interests. However, simply wanting to prevent an employee from working for a competitor isn't enough.

Before starting the process to enforce a non-compete clause, an employer should consider whether such actions are worth it. Enforcing a restrictive covenant can be expensive. If an employee leaves and immediately begins working for a competitor, an employer may need to seek a court order to stop the employee from engaging in the restricted activity. The employer is typically responsible for paying its own attorneys fees and costs, so the damage the employee is likely to cause must justify the expense.

Employers should also be cautious about assuming that a court will simply rewrite an overly broad provision. North Carolina courts have historically been reluctant to "blue pencil" or rewrite unreasonable restrictive covenants. For that reason, employers should think about enforceability and practicality when drafting the agreement, not only after a dispute arises.

Despite their popularity, a non-compete is not always the best way to protect a business. An employer may be better served by a confidentiality agreement or a non-solicitation provision. In many situations, these restrictions may provide adequate protection for the business without significantly limiting an employee's future employment opportunities – making such provisions easier to enforce against a former employee.

However, enforcement of a non-compete may be particularly valuable when an employee has significant customer relationships, access to highly sensitive information, or other knowledge that could cause substantial harm if used by a competitor. For example, if your lead software designer leaves your company to work for a direct competitor in the same role, then seeking injunctive relief or enforcing the terms of a non-compete may be necessary to protect a legitimate business interest. A confidentiality agreement or non-solicitation agreement may not be sufficient in this example.

Whether you're an employer considering adding a non-compete clause to an employment agreement or an employee who has been asked to sign one, the attorneys at Jesson & Rains, PLLC can help you understand your rights, obligations, and options so you can make an informed decision.

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What is Intellectual Property?

8/28/2018

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What is intellectual property?

“Intellectual” property refers to creative works used in business that have economic value. The four most common types of intellectual property (“IP”) are trademarks, copyrights, patents, and trade secrets. Trademarks protect words, names, symbols, and logos that are identified with a brand; copyrights protect artistic works like books, music, and photographs; patents protect inventions; and trade secrets are property that are valuable and have been kept secret and out of the public domain.

We’ll be starting a series explaining each of these types of property in detail over the next few weeks. As the word “property” signifies, intellectual property is an asset. Thus, it is important for both business planning and estate planning. In the business context, it is crucial to determine who owns the IP. Is it the individual who brought it into the business (and will take it with them when they leave) or does the business itself own it? If there is a possibility for litigation, it may be worthwhile to form a separate LLC to own IP so the other business assets stay separate and protected. Next time you look at fast food packaging, you’ll probably see that the company’s trademarks are owned by a separate business.

For estate planning purposes, we want to know about IP just like any other asset – how much is it worth? Who inherits it? So make sure to share this information with your estate planning attorney.

The next blog article will go into trademarks. Stay tuned!

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Is My Non-Compete Enforceable?

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