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What are the remedies for the breach of a non-competition clause in an employment contract?

Well, a couple of things to keep in mind would be the state that you live in and whether the non-competition clause in the contract (and the length of time generally mentioned in those clauses) follow state law. So, if that particular clause is found enforceable by a court of law, some remedies include:

  • Monetary damages. Compensatory damages may be awarded if your company lost out on profit. Punitive damages may be awarded if there is evidence that shows the former employee acted with malice.
  • Liquidated damages. With liquidated damages, a formula is used to determine the amount that should be paid by the former employee. Usually, liquidated damages are listed in the contract. Much like non-compete clauses, liquidated damages must be considered reasonable by the court before they will order the other party to pay.
  • Court costs and attorney fees.

Honestly, you should talk with an experienced employment law attorney about possible remedies for violating the non-compete. Like I said, it can also depend on your state and whether the terms in that clause are considered reasonable. As a legal marketplace, the lawyers available on LawTrades can provide employment law advice to employees and business owners. Many entrepreneurs have visited our site for a quick contract review to make sure they understand the ramifications of any action they take. Hope you check us out!

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