To be enforceable, a non-compete agreement needs three things:
- a reasonable limitation on the type of work an employee can perform;
- a reasonable geographic limitation; and,
- a reasonable time limitation.
Too often, companies attempt to make the non-compete cover too big of a geographic area, make it last too long and make it cover job descriptions outside that of the employee. For example, if Bill is a manager for ABC Company that is in the business of selling high-end shoes online, then what would an appropriate non-compete agreement look like for Bill.