First, you’re not going to jail over this. But, it can cost you a lot of money and lead to a significant disruption in your life and your new business and potentially get it shut down.

The employer can file in court for what’s called an “injunction.” An “injunction” is a court order that could prohibit you from continuing your new business activities or competitive employment. If the employer can show a court that you are probably violating the non-compete, a court can order you (through a “temporary restraining order” – TRO – for 14-28 days, then through a “temporary injunction” through the remainder of the court case) to stop operating your new business. And then the employer can win an award of money against you and also get the non-compete extended as a result of the lawsuit. They may also be able to make you reimburse them for their attorney fees for having to go to court over this. And – you will have to hire your own employment attorney to defend yourself, win or lose. This all equals a lot of money. The moral of the story is that if you know that your new business plan may violate a non-compete agreement, talk to a board-certified employee rights lawyer first. An ounce of prevention can be worth many pounds of cure.