Which of the following is an incorrect statement regarding the enforceability of a covenant not to compete in an employment agreement?

A. A covenant not to compete in an employment contract is not enforceable.
B. To be legal, a covenant not to compete in an employment contract must not unreasonably impinge on an employee's right to earn a living.
C. To be legal, a covenant not to compete in an employment contract needs to be for a reasonable period of time and geographic area.
D. To be legal, a covenant not to compete in an employment contract needs to protect a legitimate business interest.



Answer :

Final answer:

Covenants not to compete in employment contracts can be legally enforceable if they meet certain criteria.


Explanation:

A covenant not to compete in an employment contract is not enforceable. This statement is incorrect as covenants not to compete in employment contracts can be enforceable under certain conditions. To be legally enforceable, a covenant not to compete should be reasonable in terms of duration and geographic scope, protect a legitimate business interest, and should not unreasonably restrict an employee's right to earn a living.


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