Contract check · Employment offer

My non-compete looks way too broad — what makes a non-compete unenforceable?

The short answer

Courts in many states examine non-compete clauses for reasonableness — looking at the scope of restricted activities, duration, and geographic reach relative to the employer's legitimate business interests. As reported in general legal commentary, courts in some states will decline to enforce a clause they find too broad; courts in other states may narrow an overbroad clause rather than void it entirely (sometimes called "blue penciling"). Whether a specific clause would be found too broad, narrowed, or enforced as written depends on which state's law governs, how the clause is drafted, and the facts of the situation. The scope of the restriction — what activities are covered, for how long, in what geography — is the starting point for any review. Scan your agreement to see how your clause is actually written before drawing any conclusions.

What Dang reviews here: Dang reviews the clause language in your employment agreement — what the non-compete, non-solicitation, confidentiality, and IP terms say and what to ask about them. It does not verify wage, hour, or leave compliance.

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What courts in many states examine in non-compete clauses

Courts in many states ask whether a non-compete is reasonably necessary to protect a legitimate business interest — typically things like confidential information, customer relationships, or specialized training provided by the employer. The three main dimensions examined are: the scope of restricted activities (how broadly "competition" is defined), the duration (how long the restriction runs), and the geographic reach (where the restriction applies). A clause restricting any work in a broad industry globally for three years would be treated differently than one restricting work for a named list of direct competitors in a single city for six months.

Some states apply what is called "blue penciling" — narrowing an overbroad clause to what the court finds reasonable rather than voiding it entirely. Other states void an overbroad clause rather than rewrite it. Still others, like California and Minnesota, treat most employee non-competes as void regardless of scope. The state whose law governs the agreement determines which of these approaches would apply. The clause language and governing-law provision are the starting points.

Why people worry

A clause that says "you may not work for any business that competes in any market we operate in, anywhere in the world, for two years" reads like it would prevent almost any next job. Workers confronting language like this wonder whether it means what it says and whether it would actually hold up. The honest answer is that the outcome depends on state law and the specific facts — and is not something a document review can resolve with certainty, but it can identify what the clause says and what factors are most relevant.

What to look for in your agreement

Questions to ask before acting

Why scan instead of guess

The general rule tells you the baseline. Your offer tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.

The deterministic engine scores and decides what’s risky. The AI only enriches the plain-English wording — AI extracts, code decides, never the other way around.

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Common questions

What is 'blue penciling' and does it apply to my agreement?

Blue penciling refers to a court narrowing an overbroad non-compete to a scope it finds reasonable rather than voiding the whole clause. Whether your state's courts apply blue penciling, and under what circumstances, depends on the governing state — the clause's governing-law provision identifies which approach would apply.

Can I just ignore a clause I think is too broad?

Acting on an assumption that a clause is unenforceable without a review carries risk — the employer may seek to enforce it regardless, and the outcome of any challenge depends on the specific facts and state law. Understanding what the clause says and which state governs it is the starting point for assessing the situation.