Interns’ Job Prospects Constrained by Noncompete Agreements

As a junior in college, Delaney Dunne took an internship for class credit and $10 an hour at co-working company TekMountain in Wilmington, N.C.

On graduation day this year, she received a letter from TekMountain’s parent asking about her employment status and reminding her she had signed a noncompete agreement with TekMountain in November 2017 that restricted her employment options. Ms. Dunne’s noncompete agreement stated that she couldn’t work for a competitor in software or banking within 15 miles of Wilmington for a year after leaving TekMountain. Legal experts say courts tend to look favorably on agreements that protect companies’ information, but may invalidate those that restrict interns’ or employees’ free speech or movement.

Source: www.wsj.com