A recent decision from a North Carolina Court of Appeals could affect the enforceability of employment agreements between staffing companies and temporary employees. In Phelps Staffing, LLC v. C. T. Phelps, Inc., 740 S.E.2d 923 (N.C. Ct. App. Apr. 16, 2013), the court found a staffing company’s non-compete agreement was unenforceable because (1) its customer restriction was not limited to the exact location where its temporary workers were placed, and (2) it applied to temporary employees who were terminated “for any reason whatsoever,” irrespective of whether the company decided to no longer provide staffing to a given client and terminated employment on that basis.
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