The Craig Agency operates an employment agency business by obtaining orders for job openings from employers, obtaining job applicants and then trying to match the applicant with the job opening. Bennett and Leek were employed as counsellors with the agency and their employment contracts included this covenant:
Non-Competition: It is understood and agreed that in the event of the cancellation of this Agreement, Counsellor shall not, for a period of three months from the date of said termination, engage in the employment agency business, directly or indirectly, or as an owner, operator, partner, officer, director, shareholder, employee or contractor of another employment agency situated or operated within a radius of 25 miles of Agency. Counsellor warrants and represents to Agency that in the event that the restrictions set forth herein become operative, he will be able to engage in other business or businesses for the purpose of earning a livelihood.
Are Bennett and Leek bound by the non-competition clause? What are the relevant factors? What should they do if they decide to leave Craig and open their own agency?