Canadian courts will apply competition and non-appeal agreements, but the agreement must be limited, in time, scope and geographic scope, to what is reasonably necessary to protect the company`s property rights, such as confidential business information or customer relations and the scope of the agreement must be clearly defined. Shafron v. KRG Insurance Brokers (Western) Inc. 2009 CSC 6 of the Supreme Court of Canada found that a non-competition agreement was inconclusive because the term “Metropolitan City of Vancouver” was not definitively defined.  There are three general types of non-competition clauses. The first is known as real competition prohibitions and refers to a situation in which workers cannot work anywhere where they should disclose the trade secrets of their former employers as a need for employment in another company. The rest are referred to as non-invitation to customer restrictions and non-staff limitation requirements. “Conflict of Laws” allows courts to determine which national laws apply when laws of more than one state are applicable to litigation, but produce different results. For example, a non-compete agreement between a California-based employer and a Nevada employee, signed in Nevada, could be interpreted under Nevada or California law, depending on the circumstances.
If Nevada law applies, the restrictive confederation may be enforceable against the employee. If California law applies, it is unenforceable. The applicability of non-compete agreements in the state of Florida is quite common. Some law firms develop their law firms around these agreements and represent the workers, employers and potential new employers of a worker currently bound by a non-compete agreement. The agreement should not be too broad and is generally difficult to implement if it takes more than two years.  However, Florida courts rarely refuse to impose a non-competition clause because of its length or geographic scope. Instead, Florida law requires the courts to make an unauthorized, broad or long-term competition prohibition agreement a “blue pencil” to make it appropriate within Fla`s limits.