Can I require employees to sign non-compete agreements in North Carolina? What are the requirements?

Non-compete agreements are generally enforceable in North Carolina, but there are certain requirements that must be met.

Requirements for Non-Compete Agreements in North Carolina

1. Consideration: The employee must receive some form of consideration in exchange for signing the non-compete agreement. This can be in the form of a job offer, a promotion, or some other benefit.
2. Reasonableness: The non-compete agreement must be reasonable in scope, duration, and geographic area. The agreement must be no broader than necessary to protect the employer’s legitimate business interests.
3. Legitimate Business Interest: The non-compete agreement must be designed to protect the employer’s legitimate business interests, such as trade secrets, confidential information, or customer relationships.
4. In Writing: The non-compete agreement must be in writing and signed by both the employer and the employee.
5. Notice: The employer must provide the employee with notice of the non-compete agreement at the time of employment or at the time the agreement is signed.

Relevant Law

North Carolina General Statute § 75-4 provides that contracts in restraint of trade are illegal and void, except for certain exceptions, including non-compete agreements. However, non-compete agreements are only enforceable if they meet the requirements outlined above.

Sources

• [1.1]" >NCGS 75-4
• [Non-Compete Agreements in North Carolina]

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Jurisdiction

North Carolina

• Labor