Noncompete agreements are a newsworthy topic these days, but there’s one question that likely isn’t being considered by employers and that’s whether they increase damages in employment litigation. In a recent blog post, R. Scott Oswald and Adam Augustine Carter of the Employment Law Group argue that this unintended side effect of noncompetes can have very real repercussions.
For instance, an employee that leaves or is fired and is under a broad noncompete agreement may be hesitant to look for work again in the same field, meaning he or she is out of work longer and thus can claim higher damages. Additionally, a court or jury “is likely to be more forgiving to an employee who was unsuccessful in finding employment where that employee faced severe restraints in his job search,” the authors note.
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