T Nation

Non-Compete Employment Contract


#21

I talked to the President of my company about the NCC and if you’re in a right to work state, it is even harder to put through litigation, as they consider your customer list that you obtained while working YOUR customer list. However, if you take that list and start up your own company, that is a different situation.


#22

First thing you need to do is take a good look at the “non-compete” clause. What does it prevent you from doing?

Most of these clauses/contracts merely bar you from toaking employment with an competitor company. In a case like this, you ex-employer will probably still sue you, but the onus rests on him to prove to court that the terms in the contract was a) reasonable b) necessary c) you accepted the terms out of your own free will and know what the effects of them are d) you will proceed to divulge sensitive information to your new employer which will be to his detriment.

You/ your Attorney will have to make the argument that the contract was a) unreasonable due to the excessive restricting effect of you not being able to earn an income in your chosen field b) the protection you former employer seeks is not necessary as you do not possess any privy information of your former employer, namely “trade secrets”, client lists. c) at the time of signature of the contract you were not ad idem (in agreement) with the terms.

As a final argument you have to prove put before court that the contract as a whole is contra bona mores (against good public policy) and therefore, in specifically the non-compete clause, is unenforeable.

If however you work in an technical/specialised field, the non-compete becomes very enforceable due to the nature of your employment. A company’s development, trade secrets and client lists are all deemed to be an asset worth protection.

15min or part thereof of written consultation : $250.00 please :slight_smile:


#23

[quote]Brother Chris wrote:

[quote]attydeb2005 wrote:
Depends on a lot of things. $500 as consideration? Not enough. They are hard to enforce. Size of your town? 100 miles is a long damn way to say someone can’t compete. Basically that means you have to pick up and move in order to work in the industry? Not reasonable. The only thing I see that you did that is potentially bad is making customer lists. [/quote]

This, $500 won’t go through a judge, a $10 million customer list though, will get you sued.[/quote]

Unless they’re a shit company (and thus hire shitty lawyers), the lawyer writing up the agreement probably drafted the contract with the standard of that jurisdiction in mind. Do you think they just decided to pay the amount of $500 out of their ass? That’s probably the usual requirement in the jurisdiction…same with the length. Again, you guys shouldn’t be giving legal advice to this guy. He needs to talk to a lawyer in his state. Nobody even knows what state this guy lives in.


#24

[quote]Brother Chris wrote:

[quote]theOUTLAW wrote:
I wouldn’t take a chance…they paid you consideration in exchange for giving up your right to compete with them. It may or may not be a contract of adhesion. Your former employer may or may not find out, and they may or may not take action if they do find out…but again, TALK TO A LAWYER. You shouldn’t be taking legal advice from people on the internet.[/quote]

A judge will never consider $500 compensation for non-compete. [/quote]

In most at will states, continued employment is considered just compensation.


#25

Non competes are extremely hard to enforce and depending on the state you live in may not be enforceable at all. Most companies have you sign them because they know the average idiot is too dumb or scared to actually know their rights and will conform to the non compete without the need for enforcement.


#26

[quote]J Nasty wrote:
Does anybody have any knowledge of these things?

I work for a commercial construction contractor as a salesman. Four years ago I signed a non-compete clause to not solicit any business within 100 miles for 2 years of our office. I was already employed for the company and they gave us a $500 bonus to sign the contract.

I decided to join a competitor in the same position about 4 months ago. My duties changed. at my former company which greatly affected by ability to make a commision. It has been about 4 months and my former employer is unaware that I a working for the competition. I have solicited a few customers that have given me business. I do expect them to find out within the 2 year window of my non-compete. I do have customer lists that I put together during my previous employment.

Is there anything wrong with what I have done? Any advice is appreciated as I am not really farmiliar with these contracts.[/quote]

California law heavily favors the sales rep. Non-competes are but merely a scare tactic. I’ve changed companies several times and brought my customers with me. Yes, I’m a whore.


#27

[quote]cs80918 wrote:
I’ve been in the same situation, don’t worry about it. Do not sell to former customers’ that you sold that are from your previous employer that is just evil. Go find new customers and you’ll be just fine. People don’t go to jail for things like this.[/quote]

Wrong! They’re a customer because of you. There’s nothing evil about it.


#28

I am in North Carolina, which I believe is a right to work state.

There is no way they will know I have any customer lists as I put them together myself.

The only thing I am planning on doing at this point is keeping on working and if they do send me a letter, addressing it at that point.

My current employer is aware of my non-compete.


#29

you may or not have breached your contract with the first emoployer. too many unknowns you haven’t addressed. you may be in some legal trouble for it. but you may be too insignificant to worry about.

But what you have also done is shown you are an unethical employee. i represented a company who hired someone who violated their non compete. as soon as the new company found out, they canned him. he was not the type of emplyee they wanted working for them. think about it - you broke a contract and stole from your former employer. would you want someone like that working for you?


#30

[quote]Testy1 wrote:

[quote]Brother Chris wrote:

[quote]theOUTLAW wrote:
I wouldn’t take a chance…they paid you consideration in exchange for giving up your right to compete with them. It may or may not be a contract of adhesion. Your former employer may or may not find out, and they may or may not take action if they do find out…but again, TALK TO A LAWYER. You shouldn’t be taking legal advice from people on the internet.[/quote]

A judge will never consider $500 compensation for non-compete. [/quote]

In most at will states, continued employment is considered just compensation.
[/quote]

For two years of not working in his profession?


#31

[quote]Brother Chris wrote:

[quote]Testy1 wrote:

[quote]Brother Chris wrote:

[quote]theOUTLAW wrote:
I wouldn’t take a chance…they paid you consideration in exchange for giving up your right to compete with them. It may or may not be a contract of adhesion. Your former employer may or may not find out, and they may or may not take action if they do find out…but again, TALK TO A LAWYER. You shouldn’t be taking legal advice from people on the internet.[/quote]

A judge will never consider $500 compensation for non-compete. [/quote]

In most at will states, continued employment is considered just compensation.
[/quote]

For two years of not working in his profession? [/quote]

Yes, not saying it is easily enforceable, only that the just compensation angle is not the one to take. If you look at that link provided earlier they list what is considered just compensation by state.