In this context, employers may include an amount that the employee must pay if he violates the non-compete obligation with his employer. Since lump sum damages are part of the contract, the new employer does not have to pay lump sum damages unless he has signed a contract directly with the former employer. Courts must decide whether a lump sum indemnification clause is appropriate before demanding payment from a party. This amount may also vary. What happens if you violate a non-compete clause under U.S. law? Many things can happen to you if you violate a non-competition clause, including a lawsuit, but it can also happen that nothing happens to you. Today, non-compete obligations are controversial and are rather disapproved by the courts and law of most U.S. states. .