Legally not, but it may tell you that the employer does not consider the cost and risk of trying to enforce the agreement. It may also be that the employer decided that the agreement was probably not applicable anyway. It is not a guarantee that the employer will not try to impose it in your case, unfortunately. Before you deliberately choose to violate a non-compete agreement to which you are subject, contact a lawyer who can reach the agreement with you and help you evaluate an appropriate procedure. So what exactly happens if you violate a non-compete agreement? The simple answer is that if you violate a legally valid and enforceable non-compete agreement under state law, you will end up having to pay money to your former employer. In addition, your former employer may also take legal action against your current employer because you are violating the non-compete agreement. But it may also happen to you after a violation of a non-compete agreement, because the employer does not want to enforce the agreement and take legal action against you or your future employer. What is more, it is also possible that you will not have any consequences on the violation of a non-competition clause because, at first, the agreement is not even binding. All this can be alarming for someone who has no legal training and it is important to contact an experienced lawyer before entering into a non-compete agreement or as soon as you think you may be subject to an agreement.
At the first hearing, the court may make a temporary decision to prevent you from doing an activity in question, or decide that what you are doing is correct for now. An injunction will only be effective until you return to court for a more complete, and generally longer process to finally decide the issue. Alternatively, your first hearing, depending on the facts of your case and the procedures of your state, may be the last hearing. The court will hear evidence from you and your employer and decide whether you issue an order that prevents you from participating in the attacked activity or if you reject your employer application and allow you the freedom to continue the attacked activity. That depends. The courts` approach to entering into non-competition clauses varies considerably from state to state. Some States are very concerned about imposing alliances that are not in competition and will actively rewrite those that, in geography or over time, are too broad to make them easier to apply. Other state courts have seen alliances not to compete, very negatively, and have imposed only those that are very clearly reasonable in geography and time and which are supported by a significant counterparty (the payment of money in return for the agreement). This approach varies from state to state and often depends on the facts of each case.
Result #1 – The company does nothing. You signed the non-compete clause, resigned and joined a competitor throughout the city. Technically, you`re violating your non-competition rules. But for various reasons, the company decided not to enforce the terms of the contract.