Thank you for your question. This response will answer your immediate question. Then, it will provide a general overview on non-competition clauses.
If the new contract supersedes the old agreement, the non-compete agreement will not be enforceable. There is a chance, though, that the clause will still be binding on your new employer if it originally contained a survival or assignment clause. Survival clauses dictate how the contract will be handled after a company is sold. Assignment clauses provide that the new company will take on all the old company’s contractual obligations. I want to emphasize, however, that this advice is general and may not apply in your case. I would encourage you to send me your previous contract and the new contract so I can read the two and definitively determine if your non-compete clause has been waived.
Non-competition clauses place limits on the employee’s right to compete with the employer after termination of employment. Employers prefer these clauses because they can be policed easily and prevent former employees from leaking trade secrets. Non-compete clauses, however, are disfavored in contract litigation because they restrain trade. Courts and legislatures have responded to this conundrum by placing requirements on contracts. Typically, the clause must be necessary to protect the employer’s interests and the geographic, scope, and temporal restrictions cannot be overly burdensome on the employer. I mention this only because you would not want to waste resources resuscitating a non-compete agreement that a court would not enforce. I hope this helps.
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