Non-compete agreements will soon be a thing of the past, thanks to the Federal Trade Commission issuing a nationwide ban on them. That hasn’t stopped companies and medical practices from still asking potential employees to sign them.
If you’re one such employee who’s currently wondering how to get out of non-compete agreements, this article discusses seven ways to do it.
Key Takeaways
- Take a non-competitive job or role outside your current employer’s specialty.
- Prove your employer breached the contract to invalidate the non-compete clause.
- Argue that the non-compete is overly restrictive or not enforceable.
- Negotiate or prove no legitimate business interests exist to uphold the agreement.
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How To Legally Get Out of a Non-Compete Agreement
If your employment contract has a non-compete clause, you may be able to get out of it in the following scenarios:
1. Get a New Job That Doesn’t Involve Competitive Activities
Leaving your current employer for a new role that involves a different practice of medicine and medical clients is the best way to get out of the consequences of a non-compete agreement.
For instance, if you leave a pediatric practice in favor of one that caters to the elderly, your ex-employer can’t limit your activities based on a non-compete. You can also consider getting an alternate job, such as being a teacher or consultant.
2. Prove That Your Former Employer Breached the Contract
When you enter into an employment relationship, your employer owes you certain obligations. At a minimum, they’re expected to compensate you for your work and provide a work environment that’s free of danger or anything that hampers their employee’s ability to do their duties. You may also be entitled to perks like paid time off.
If the employer breached the contract by failing to hold up their end of the bargain, you can get out of the non-compete agreement.
Legally, the courts view a party who breaches a contract but turns around to enforce it as coming before the court with unclean hands. Thus, should your contract-breaching employer decide to sue you, the courts will call their enforcement of the contract into question.
3. Argue That the Non-Compete Provision Isn’t Enforceable
Even though many employers include non-competes for legitimate reasons, a few may go farther than is reasonable. For example, the employer may place restrictions on competitive activity that covers a too broad geographical area or lasts longer than is legally acceptable.
If your non-compete agreement has unreasonably restrictive non-compete provisions, and you end up in a dispute about them, your employment attorney can argue that they’re unenforceable.
Another example of a situation where non-compete law will have courts ruling in your favor is if the clause runs counter to the public interest. For instance, your employer will find it challenging to enforce a non-compete agreement if there’s a shortage of medical specialists with your skills in your area.
4. Show That Your Previous Employer Has No Legitimate Business Interests
To be enforceable, a non-compete clause must serve a legitimate business interest. One such example is to protect trade secrets from falling into the hands of a competitor (a.k.a, your new employer).
If a court were to determine that your current employer’s non-compete agreement fails to serve a legitimate business interest, you can get away scot-free.
5. Prove That Your Employer Used Undue Influence to Make You Sign the Non-Compete Agreement
If you can prove that you were pressured into signing the non-compete agreement, you won’t be bound by it.
The legal term for it is “undue influence” and it isn’t an allegation you should make lightly. For example, signing the agreement because you badly needed a job as a physician fresh out of medical school may not count.
However, if your employer applied emotional or psychological pressure on you to sign the contract you may have a legal way out of the agreement.
6. Avoid Signing the Non-Competition Agreement
You can’t be bound by an agreement you didn’t sign it. As unlikely as it is for practicing physicians to not sign employment contracts, you might be one of the rare cases. For example, your workplace may have been busy to the point where your employer failed to follow up with you.
Thus, if you can prove that you didn’t sign the agreement, or that the signature on the signed document doesn’t belong to you, you can get out of the non-compete clause.
7. Negotiate
As a last resort, you can try negotiating your non-compete with your soon-to-be ex-employer.
Your ability to do so will depend on multiple factors, such as how amicable your separation has been and your negotiation abilities.
If you didn’t burn bridges on your way out, and you can convince the employer that you won’t pose a threat to their business, you may be able to negotiate your way out. In some cases, you may be so persuasive as to get your employer to alter the terms (e.g., reducing the timeframe within which you won’t be allowed to compete).
Final Thoughts
Getting out of a non-compete agreement can be a complicated process that requires expert knowledge. Luckily, our experts are well-versed in helping physicians like you, with an entire career ahead of them, break free of such limiting clauses.
Contact us to consult with one of our experts and learn how you can leave a current employer without worrying about a potential lawsuit.
