Non-Compete agreements???

[FRITOLAYGUY]

Is there anyone in this forum that has ever had to sign a Non-compete for your employer before being hired, what i really want to know is how hard is it to get out of one if you want to work for a direct competitor of the same exact industry that your current job is in? Any info would be very helpful on this matter, my noncompete is 6 pages long.

 

[drjeff]

Is there anyone in this forum that has ever had to sign a Non-compete for your employer before being hired, what i really want to know is how hard is it to get out of one if you want to work for a direct competitor of the same exact industry that your current job is in? Any info would be very helpful on this matter, my noncompete is 6 pages long.

They happen all the time in my field(dentistry) with the formation of a partnership and/or the hiring of an associate dentist. Basically, they can be broken *if* the no compete restrictions in the document are deemed "unreasonable" So if your no compete would have you unable to do what you do in say the entire United States, then you could break that. If the no compete agreement just excludes the immediate and "reasonable" area around your place of employment then the chances of breaking it and not facing the defined repercusions of the agreement are slim. If you're really worried about it, have a contract law lawyer review it for you, the few hundred $$ you spend now could potentially save (or make) you thousands later.

 

[ctenidae]

What drjeff said. It's sometimes possible, depending on your employer, to negotiate out of them.
Other "unreasonable" items could be the time frame (6 months is standard, 1 year is pushing it, depending on the industry). If the competitor really wants you, make them buy out the non-compete.

 

[marcski]

I think it's very industry specific. I know a few industries where there is a 2 year time period.

 

[bill2ski]

In my industry, if we sense you growing wings.
We just, throw away your rolodex and make your computer dissappear. Then we call all your accounts and sully your good name. If you come crawling back, we mock your lack of fortitude.
A non-compete would ruin all the fun.

 

[vcunning]

Since your from Connecticut, this is an intersting article on non-competes at ESPN.

I had to sign a non-compete agreement (I work for a high-technology company) when I joined my company 7 years ago. I actually "forgot" to send that form in, but they caught it right away.

Our Attorney General has had some strong opinions of these type of agreements, but the bill that was passed seems to be very focused on "Security Guards".

 

[ccskier]

We have one at the insurance agency I work at for sales people. They are rules to live by, I would not break one, people try but they do hold up in the sales world. I have a guy who I work with that his finally just ended with his old agency He is now finally getting back hundreds of thousands of dollars in clients. He was ethical about it and knows that they they do hold up in court. He was smart. New employers can sometimes buy clients/patients for you, that may be a possibility. Mine is a 3 year non-compete.

 

[madskier6]

The key to enforceability is whether it's limited in scope on several counts: (i) in terms of what activities are prohibited, (ii) geographic scope & (iii) length of the non-compete period, among other things. Also, were you paid for the non-compete or was it a condition of employment? (You don't have to answer that here but it is an important factor). If you were separately paid for it or it was part of some larger sale transaction, it will be more enforceable for the employer than if you already had the job & they made you sign it or you had to sign it at the beginning of your employment.

If it's overly broad in several respects, you could have a decent chance of beating it. The problem with that approach, if you have a litigious former employer, is that you have to litigate it to determine that. That can obviously take a lot of time and money. Unfortunately for employees, a lot of employers add a provision to the agreement that requires the former employee to pay the company's legal fees if they have to enforce it. The one benefit in your position is that they have to come after you & make you stop competing with them, although if you're forced to pay their legal fees, this may not be a significant benefit.

 

[ccskier]

The key to enforceability is whether it's limited in scope on several counts: (i) in terms of what activities are prohibited, (ii) geographic scope & (iii) length of the non-compete period, among other things. Also, were you paid for the non-compete or was it a condition of employment? (You don't have to answer that here but it is an important factor). If you were separately paid for it or it was part of some larger sale transaction, it will be more enforceable for the employer than if you already had the job & they made you sign it or you had to sign it at the beginning of your employment.

If it's overly broad in several respects, you could have a decent chance of beating it. The problem with that approach, if you have a litigious former employer, is that you have to litigate it to determine that. That can obviously take a lot of time and money. Unfortunately for employees, a lot of employers add a provision to the agreement that requires the former employee to pay the company's legal fees if they have to enforce it. The one benefit in your position is that they have to come after you & make you stop competing with them, although if you're forced to pay their legal fees, this may not be a significant benefit.

Perfectly said.

 

[dmc]

Nice... Legal advice from an internet message board...

 

[ctenidae]

Nice... Legal advice from an internet message board...

It's what we're here for.
Short form of the answer, I think, is consult an attorney.

 

[tree_skier]

I had one, broke it, consulted a lawyer when challenged, sent former employer a "sh*t in your hat letter" end of issue. My lawyer said that non compete clauses for most people are meaningless, especially sales. The few cases that are won are when there is propietary technical knowledge at the core. The case that was quoted in the cease and desist letter I recieved was the chief engineer for a company that made specialised pumps for the space industry (the only company in the world that made the parts) left to start producing those for someone else.