Question

Bob accepts a job at a local barbershop in Quincy, IL. As a condition of employment, Bob is required to a sign a document which prohibits him from opening a barbershop in Quincy IL, and prohibits him from working at a competing barbershop in Quincy, IL for the rest of his life. After working for 5 years at the barbershop, Bob quits. 10 years after he quits, Bob opens his own barbershop in Quincy, IL. The barbershop sues Bob to enforce the document Bob signed. Will Bob be able to open (and run) his barbershop in Quincy IL?

Answer 1

Bob will be able to open and run his barber shop in Quincy IL. The non-compete provision in the document signed by Bob as condition of employment with the barbershop is valid and enforceable only when the provisions given in the agreement are narrowed down to protect the employer’s legitimate business interest as to time, place and activities. The legitimate business interest may include maintaining the goodwill with existing customers, their confidential information and trade secrets. In this case the barbershop’s legitimate interests may include protecting their goodwill with their existing customers and protection of their trade secrets. The agreement would have been enforceable if it was for a limited time because the trade secrets and the customer base for a barbershop may change over time. But here the agreement prohibits Bob from opening a barbershop in Quincy IL for the rest of his life and the agreement can be considered overly broad in terms of duration. Moreover Bob had tried to open the barbershop ten years after quitting the job and it would be unreasonable to restrict him based on the non-compete agreement. Hence the agreement would be unenforceable and Bob can open his barbershop in Quincy IL.