Under the standard for enforceability of a noncompete discussed in the McCarthy case, which element is NOT required?

Under the standard for enforceability of a noncompete discussed in the McCarthy case, which element is NOT required?

• A. A bona fide promotion with materially increased responsibilities.
• B. An agreement entered into upon the promotion.
• C. The potential to protect a legitimate employer interest.
• D. The noncompete signed before the employment begins.

Answer: (D)

In McCarthy’s framework, enforcing a noncompete rests on tying the restriction to a genuine promotion and protecting legitimate employer interests. The three essential elements are that the employee receives a bona fide promotion with materially increased responsibilities, that the noncompete is entered into at the time of that promotion, and that there is a legitimate employer interest being protected (such as confidential information or key client relationships). Signing the noncompete before employment begins isn’t required in this standard—the restriction can be imposed as part of a promotion.

In McCarthy’s framework, enforcing a noncompete rests on tying the restriction to a genuine promotion and protecting legitimate employer interests. The three essential elements are that the employee receives a bona fide promotion with materially increased responsibilities, that the noncompete is entered into at the time of that promotion, and that there is a legitimate employer interest being protected (such as confidential information or key client relationships). Signing the noncompete before employment begins isn’t required in this standard—the restriction can be imposed as part of a promotion.