Business Law: Non-Competes Part III

Ok, here is my third Blog Post in so many weeks on covenants not-to-compete.

If you read my last blog post on non-compete agreements, you will recall that I mentioned that non-competes are unenforceable against lawyers.

You might ask the question: What happens when law firms attempt to bind their attorneys to non-competes? 

I’m glad you asked.

See the ABAJournal article that came out today:  “Lawyer is reprimanded for including noncompete provision in associate’s contract”  here
What’s most interesting is the lawyer’s comment – that he wasn’t going to really enforce the non-compete.

Well, of course he wasn’t. Can you imagine a Judge hearing that case? The Judge knows the law, and would sanction the lawyer for bringing the lawsuit to enforce a covenant not-to-compete.

The lawyer’s answer really underscores a broader point: in general, many businesses will have employees sign non-competes that they never intend to enforce – simply in hopes that it deters the employee from attempting to compete.

Questions? Comments?

email: Jeshua@dwlawpc.com

http://www.dwlawpc.com

Published by jeshuatlauka

Attorney at David, Wierenga & Lauka, P.C., business law firm in downtown Grand Rapids, Michigan. I serve as a legal advisor/ fractional GC to purpose-driven businesses. I am married with 4 kids. Above all I am a follower of Jesus Christ.

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