A: Legal parameters for non-compete agreements vary from state to state. For example, some states — such as California — will not enforce most non-compete agreements, even if the terms are reasonable. Other states — such as New York — will enforce most reasonable non-compete agreements. Generally, the interests of the employee and the employer are balanced in order to avoid enforcing an undue hardship on the employee’s right to earn a living, while still protecting the employer’s legitimate business interests. Courts typically consider balancing factors such as duration, location, and scope or extent of the non-compete.
Without knowing your state’s particular legal requirements or the full terms of your contract, at first glance it would seem that a three-year, 50-mile radius restriction could be too restrictive to be enforced, especially since there are only two other nail salons in town. You should contact a local attorney who can analyze your contract and assess its enforceability.
— Erin Mindoro is an attorney with Berger Kahn (www.bergerkahn.com) in Irvine, Calif.