Another Non-Compete and Non-Solicitation Agreement Bites the DustNon-Compete and Non-Solicitation Agreement • August 11th, 2022
In American employment law, the majority of non-compete and non-solicitation covenants have traditionally been governed by state common law. Many states have set the bar low for when a non- compete or non-solicitation covenant is enforceable. Generally, a non-compete or non-solicitation agreement is enforceable if the employee receives “something of value” in return for accepting restrictions on the employees’ rights after the employment relationship has come to an end (non- compete or non-solicitation). This concept of value in return for the non-compete covenant is generally known as “adequate consideration”. In many states, often the mere offer of employment, or even just the offer of continuing an existing employment relationship, is considered “adequate consideration”.