Non-Compete Agreements in NC!

NC Court of Appeals Recent Decision and What You Should Know!

The North Carolina Court of Appeals recently decided a new case on the enforceability of noncompete agreements. In Copypro, Inc. v. Musgrove, No. COA13-297 (N.C. App. Feb. 4, 2014), the Court of Appeals held that a noncompete restricted too many actions of the former employee to be held enforceable. In Copypro, Musgrove worked for Copypro in the office equipment business. He signed a noncompete which prohibited him, once leaving employment with Copypro, from working or being “connected in any manner with any business of the type and character of the business engaged in by” Copypro. The Court held that this restriction was too broad in that it prevented Musgrove from performing any work for a competitor-even work which was wholly unrelated to what he was doing for Copypro.

The point to remember is that while noncompetes can be useful tools to protect an employer’s interest, if they are drafted too broadly, they will not be upheld. You should always seek legal counsel of an attorney practicing in the area of employment law before entering into a these types of restrictive covenants.

For more information on this or any other employment-related legal topic, please contact Christine Mayhew, Attorney with Anderson Jones, PLLC at (919) 277-2541 or by email!