But the former leaders' countersuit paints their workplace very differently
A North Carolina court has refused to enforce an employer's non-compete, calling it too broad - a warning for HR teams that write restrictive covenants.
On July 23, 2026, the North Carolina Business Court refused to enforce a non-competition clause an autism-therapy company had used to try to stop two former leaders from competing. The judge called it "facially overbroad" and unenforceable as written.
The problem was the drafting. The court flagged three flaws. The clause blocked the former leaders from working "directly or indirectly" in the field, a phrase North Carolina judges keep refusing to enforce. It never defined the "geographic area" it covered. And it reached any place the company was "actively planning to" do business, wording the court found too vague.
The company asked the judge to narrow the clause with the "blue pencil" doctrine. He declined, noting it had not raised the argument in its brief and had waived it. The lesson for HR: a court may not rescue a sloppy non-compete, and the fix must be requested the right way.
The ruling hit only the non-compete. The company's related non-solicitation and confidentiality terms were not challenged as overbroad and survived, a reminder that the pieces of a restrictive-covenant package stand or fall on their own terms.
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