Leaving a senior role: what your non-compete really means
What a non-compete can and can't stop, and what to check before you sign a separation agreement.
Elena Marlowe
·
9 min read
What a non-compete does
A non-compete restricts where you can work, and for whom, after you leave a role. It sounds absolute. In practice, courts treat it as something to be tested, not simply obeyed.
Whether yours holds depends on what it protects, how long it runs and how far it reaches.
What to check
01
What it protects
A real business interest, such as trade secrets or client relationships.
02
How long it runs
Six to twelve months is common. Two years or more is harder to defend.
03
How far it reaches
Geography and industry should match the role you actually held.
04
What you were paid for it
Severance or garden leave can strengthen the employer's case.
05
How it was signed
Timing, consideration and clear wording all matter.
A non-compete is a negotiation that hasn't happened yet.
What to avoid when you leave
Most of the damage I see comes from four habits:
Taking files, contacts or code that belong to the company.
Signing a release before anyone independent has read it.
Telling colleagues or clients where you're going before you've left.
Starting at the new job before the terms are agreed.
If you've been handed an agreement
Don't sign under pressure
A signing deadline is a tactic, not a rule. Send the agreement to a lawyer first, even if the numbers look fine. A first call with me is free.
Most separation offers can be improved, and most improvements are asked for in the first week.
What happens next
Most executive exits end in a negotiated package within four to twelve weeks. The first 48 hours after you receive an offer often decide how good it will be.
WRITTEN BY
Elena Marlowe
Commercial litigator in New York since 2013. I run a one-lawyer practice and write these to answer the questions I hear on first calls.
This article is general information, not legal advice about your situation. Reading it doesn’t create an attorney–client relationship.
KEY TAKEAWAYS
Not every non-compete is enforceable
Read the separation agreement before you sign
Take nothing that belongs to the company
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