When is itOK to break a non-compete clause?

UPDATED: Jul 9, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

When is itOK to break a non-compete clause?

Currently using a home health care franchise that has had a government tax lien put on it. Been asking it’s caregivers to hold cashing their paychecks because of insufficient funds among other issues. We are going to quit the agency but don’t want to loose the caregivers. We would like to hire the caregivers privately but there is a non-compete clause. Is there a way to get out of it since the agency is in trouble and possibly closing down?

Asked on July 9, 2011 under Employment Labor Law, Tennessee


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

No lawyer is going to tell you to breach an agreement that you entered in to.  They will only tell you if the agreement is enforceable against you based upon the facts of the case.  I would seek help with this mater as the facts are very unique and the agreement needs to be read.  Here is my understanding of the law in Tennessee:Non-compete agreements are generally not favored by the courts because they are viewed as restraints on trade.

  • Courts look closely at the reasonableness of the agreement to determine if the agreement is enforceable.
  • In Tennessee, non-compete agreements or restrictive covenants are not always enforceable.
  • Tennessee courts look to the following factors to determine if non-compete agreements are enforceable:
    • Consideration given for the agreement.
    • Danger to the employer if there is no such agreement.
    • Economic hardship on the employee created by the covenant.
    • Public interest.
    • Scope of restrictions, including:
      1. Geographic location covered.
      2. Time period of restriction.
      3. Job description.

  • IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

    Get Legal Help Today

    Find the right lawyer for your legal issue.

    secured lock Secured with SHA-256 Encryption