Q: Does mileage have to be exact when considering non-competes?
Hi there, I am a dentist that works for a large DSO. The non-compete I signed stipulates I cannot work within a 6 mile radius for a period of up to two years. My new practice is 5.6 miles away. How likely would they come after me for that and how likely would a court side with them? Given the new FTC ruling on non-competes, would that sway a company from pursuing anything? Thanks.
A:
Whether the non-compete is enforceable and whether the stipulated 6-mile radius is a reasonable geographic restriction depends on the facts and circumstances of your particular case. Our firm and I have handled lots of non-compete cases for both employers and employees. When the new FTC rule goes into effect and if it is not enjoined by a court, a company will likely carefully consider its impact before making a decision to pursue enforcement of the non-compete or not.
If the court finds the non-compete enforceable and that the 6-mile radius is reasonable, the court will most likely not rule that 5.6 miles is far enough. This isn't a game of horseshoes. On the other hand, if you were to move your practice 6.1 miles away, you would satisfy the terms of your non-compete and most likely avoid unpleasant litigation.
In my most recent cases involving non-competes on both sides, the clients incurred and paid close to or over $100,000 in legal expenses. All of the cases were resolved by settlement pretrial, saving the clients the cost of a trial and most likely an appeal. Weigh that against the cost of moving another 0.5 mile away.
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