When Are Non-Competes Unenforceable?

When Are Non-Competes Unenforceable Under Employment Law?

Non-compete agreements show up in everything from executive contracts to entry-level onboarding paperwork. These clauses are meant to stop employees from working for a competitor or starting a competing business for a set period of time after leaving a job. However, just because a non-compete is in your contract doesn’t mean it will hold up in court.

Overly Broad Restrictions Won’t Hold Up

Courts don’t automatically strike down non-competes, but they do scrutinize them. The more burdensome the restriction, the more likely it is to fail.

To be enforceable, a non-compete must be:

  • Narrow in duration. Most courts reject restrictions that last longer than necessary. In many cases, anything beyond 6 to 12 months raises red flags—especially for non-executive roles.
  • Limited in geography. A clause that blocks you from working anywhere in the country is unlikely to stand unless your former employer truly operates nationwide and the role justifies that scope. Even then, the employer must show a legitimate need.
  • Reasonable in scope of work. You can’t be stopped from working in your entire industry. A non-compete should only apply to positions that directly compete with your former employer.

If a non-compete goes too far in any of these areas, courts may narrow it or toss it out entirely. Some non-competes do hold up—especially when they’re narrowly written to protect legitimate business interests. Here are a few situations where courts are more likely to enforce them:

  • A software engineer with access to proprietary code is restricted from joining a direct competitor for six months.
  • A sales executive is barred from soliciting former clients in the same region where they previously built relationships on behalf of their employer.
  • A product manager is prevented from working on a competing product line at a rival company for 12 months.

D.C. Law Offers Stronger Protections for Workers

The District of Columbia has taken aggressive steps to rein in non-compete abuse. The District’s Non-Compete Clarification Amendment Act of 2022 sharply limits when employers can use these agreements.

  • Most private-sector workers in D.C. can’t be subject to a non-compete at all. If you make less than $154,200 per year (or less than $257,000 for medical specialists), your employer cannot enforce a non-compete clause.
  • Even for high earners, the employer must follow strict rules. They must give at least 14 days' notice before requiring you to sign a non-compete. The agreement must clearly describe the work you're restricted from doing, how long it lasts, and where it applies.
  • Moonlighting restrictions are also limited. Employers generally cannot stop you from taking a second job or running a side business, unless there’s a clear conflict of interest or a threat to proprietary information.

If your employer tries to enforce a non-compete in D.C. without meeting these standards, the agreement likely won't hold up. You may also have grounds to file a complaint with the D.C. Office of Attorney General or pursue damages in court.

Courts Prioritize Legitimate Business Interests—Not Just Employer Preferences

To enforce a non-compete, an employer must show that the clause protects a legitimate business interest. That could include trade secrets, confidential client lists, or relationships with key customers. It does not include protecting the company from ordinary competition.

Here’s what courts often look for:

  • Access to confidential information. If your role gave you inside knowledge that could harm your former employer in the wrong hands, a narrowly tailored non-compete might be justified.
  • Direct client relationships. If you had ongoing relationships with clients or customers, an employer may have a stronger argument for enforcement—especially if those clients followed you from job to job.
  • Unique training or company-specific methods. If your employer invested heavily in training you for proprietary systems or techniques, they may have more room to argue that a non-compete is necessary to protect that investment.

Even in these cases, the agreement must still be reasonable. Courts won’t enforce a non-compete just because a company prefers to limit competition. And they won’t allow restrictions that prevent you from earning a living in your chosen field.

Protect Your Future by Knowing Your Rights

If you're facing a non-compete—or considering signing one—don’t assume it’s enforceable. The details matter. In Washington D.C. and beyond, courts take a hard look at whether these agreements serve a legitimate purpose or simply try to control workers after they’ve left.

At Crowley So LLP, we help employees understand their rights and push back against unfair restrictions. If you’re dealing with a non-compete or other employment contract issue, contact our team to schedule a confidential consultation.