Two months after resigning from his position as a real estate agent, Li Feng received a surprising deposit of 9,119.08 yuan ($1,261) into his bank account. The payment came from his former employer, Pacific Rehouse, a property sales and rental brand based in Shanghai. The transfer description indicated that it was “non-compete compensation,” a term unfamiliar to Li at the time. Even more surprising was that over a month later, Pacific Rehouse filed a case against Li, accusing him of violating the non-compete agreement and claiming 500,000 yuan ($69,144) from him.
After a lengthy process of negotiation, arbitration and litigation, the Shanghai Chongming District People’s Court ruled that the non-compete
