A non-compete clause places restrictions on the employee and prevents them from working with companies in competition with their employer. If the employee provides industry-specific services, the agreement can prevent them from offering services to customers and creating competition for their employer. Reviewing the 8 ways to dispute a non-compete clause guides workers through these legal avenues.
- Prove That There Wasn’t a Violation of the Contract Terms
Proving the employee didn’t violate the agreement can end a dispute quickly. The attorney reviews the terms of the non-compete clause in the employment contract. Typically, the verbiage indicates that the worker can’t work for companies providing services that are similar to the company’s chief product and present their employer with the competition. Workers can get a mcallen business law attorney to review their contact today and establish that there wasn’t a violation.
- Unethical Business Practices By Employer
Any unethical business practices completed by the employer related to the non-compete could present a legal defense against the claim. If the employer has engaged in dishonest business practices, such as overcharging select clients for services and giving discounts to others, the worker might have legal grounds to prove an ethics violation.
- The Employee Never Signed the Non-Compete Agreement
If there wasn’t a signed non-compete agreement, the employer doesn’t have a legal leg to stand on. The employer must present a legal non-compete that was signed by the worker to substantiate their claim. Forgery can lead to further legal action.
- Evidence of Unreasonable Terms in the Contract
A non-compete applies to the area in which the company conducts its business. If it operates in one state only, the worker isn’t in violation of the contractual terms of the agreement by providing services in other states.
- You Don’t Have Access to Trade Secrets or Confidential Information
Employees aren’t in violation of a non-compete if they are completing services without the knowledge of trade secrets or confidential business information. Proof of no access to the data and secrets can present a defense against a claim that the worker violated the agreement.
- The Employee is Terminated Without Just Cause
If the employee is terminated without a just cause, the worker can file a claim for unlawful termination. When signing a non-compete, the worker agrees to specific terms related to the business itself and its services. If there wasn’t a violation, the employer must present evidence showing why the worker was fired.
- The Employer Violates the Employment Contract
If the employer violates the employment contract, they do not have any grounds to take legal action against the worker for a non-compete. The employment contract explains how long the employee is eligible to work for the company, their salary, and benefits. If the employer doesn’t provide compensation as directed in the contract, they have violated the contract. If the worker is let go before the term is over as stated in the contract, this is another violation of the contract.
- Deceptive Verbal Promises That Weren’t Met
Deception is a common avenue traveled by employers who want workers to sign a non-compete based on false promises. The trickery can lead the employer into hot water if the worker has evidence of these unfulfilled obligations.
Non-compete clauses or agreements prevent workers from becoming the employer’s competition. The agreements protect trade secrets and proprietary information used by the employer. Reviewing methods of disputing the agreements sheds new light on how to protect the workers from unethical practices.