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Screwed by a non-compete clause

Discussion in 'BBS Hangout' started by rockbox, Oct 7, 2013.

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  1. Space Ghost

    Space Ghost Member

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    If its a true conflict of interest, then you should reconsider. If there is no real conflict of interest, then you should be fine. If your clause is vague and non specific, that will further your cause.
     
  2. Yonkers

    Yonkers Member

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    I had a friend who was contracting through Company_A at a Client. He was going through that company because the company he was originally through went out of business. But he had been working with the Client years before that. After a year he decided he wanted to go through Company_B at the same client. Even thought Company_A did nothing to bring him on (since he was already there) they threatened to sue if he went to Company_B. Neither Company_B or Client wanted anything to do with a lawsuit. Client told him he had to fix it on his own, they would not get involved. In the end he just left everyone and went somewhere else.
     
  3. rockbox

    rockbox Around before clutchcity.com

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    There's the rub. I'm in sales, there is always a conflict of interest. However, most of the time, non-competes say you can't steal business and recruit employees, not you can't work for a competitor at all.
     
  4. Yonkers

    Yonkers Member

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    Actually, I think that's what most non-competes say... that you can't work for a competitor.
     
  5. rockbox

    rockbox Around before clutchcity.com

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    In Texas, non competes need to contain reasonable limitations as to time, geographical area, and scope of activity. I may have an out with the scope of activity since it clause in my contract says I pretty much can contract, consult, be an officer or be an employee which is really broad. I won't know if i have an out until I talk to a lawyer. The geographic area in my contract states the entrie united states. I don't know if that is reasonable either. What a PITA.
     
  6. Felixthecat

    Felixthecat Member

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    The geographical area is way too broad, lol...the entire United States? What kind of sales?
     
  7. rockbox

    rockbox Around before clutchcity.com

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    I'm in software sales and have customers all over. Maybe the new company will let me work in Europe and Asia for six months.
     
  8. MadMax

    MadMax Member

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    This is wrong.

    To the OP...go see an attorney.
     
  9. Pipe

    Pipe Member

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    What MadMax said - go see an attorney. Noncompetes are complex, but there is a reasonable possibility that so long as you don't solicit the customers you had a relationship with while working for your ex-employer, you should be OK, even in the US.

    Standard legal disclaimer - the foregoing does not constitute any kind of legal advice, but I did stay in a Holiday Inn Express last night. ;)
     
  10. dachuda86

    dachuda86 Member

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    I have a job boo hoo... sorry couldn't resist
     
  11. DFWRocket

    DFWRocket Member

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    its very common in Broadcast to sign a non-compete if you are ever on-air. I had a friend who worked at KTRH 740 for about a decade. He left for another station and they sued him. In the end, he ended up without a job because even though the 2nd company told him they would wait and hire him after the non-competes 6months grace period was up...they didn't hire him after all. The crazy thing was, he was rarely ever on-air. He was the assistant news-editor.

    But, thats why you'll see anchors "retire" from their stations, and then 6 months later they'll pop up on a different station - because they can't just leave to work for another station..they usually have to wait 6 months to a year.
     
  12. Ziggy

    Ziggy QUEEN ANON

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    Tell the company that made the offer, have them fit the bill and fight the good fight.
     
  13. juicystream

    juicystream Member

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    Or more accurately, you can't be a competitor, or require you pay a fee for customers that you take with you. I've never read one that specifically bans you from working elsewhere, but I'm also generally dealing with small business owner buyouts.
     
  14. davidio840

    davidio840 Member

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    I didn't think a company can actually force you to sign a non compete clause if you are an "at will" employee. That is unless they offer you a compensation package if you are fired or sign on bonus. If you can be hired and fired at will, why would you even sign it?

    As JuanValdez says below, either don't sign it or edit it in your favor.
     
    #34 davidio840, Oct 8, 2013
    Last edited: Oct 8, 2013
  15. JuanValdez

    JuanValdez Member

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    If you do get it worked out and managed to get hired by Company B, do not sign a non-compete with them. Or, if you really must sign (because you need to eat or whatever), go and edit the crap out of it first to make sure you can get new employment if you need it.
     
  16. MadMax

    MadMax Member

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    Because otherwise they won't give you "confidential information" necessary to do the job.

    These things are usually wrapped up in the protection of your former employer's confidential information and/or goodwill.

    There rarely is a one-size-fits-all approach. That's why the OP needs to see an attorney....things change depending on the industry, the job you had, the job you're seeking, just how confidential the confidential information was, etc.

    When I got out of law school, these things were just beginning to be enforced more in TX after a history of being very difficult to enforce. Now they're far more likely to be enforced, and I see them being applied to jobs and in industries I never thought would involve non-competes. It's probably the body of law that has changed the most since I started practicing.

    NONE OF THIS IS LEGAL ADVICE BECAUSE I HAVEN'T READ YOUR AGREEMENT....YOU NEED TO GO HIRE AN ATTORNEY WHO WILL ADVISE YOU BASED ON YOUR OWN AGREEMENT.
     
  17. Air Langhi

    Air Langhi Contributing Member

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    Just move to California. I am pretty sure they can't be enforced there.
     
  18. davidio840

    davidio840 Member

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    Valid point but you can sign a non disclosure agreement (confidentiality agreement) stating you won't share information, take clients when you quit, etc. without signing a non-compete clause.

    Most non-compete clauses I have seen state something similar to "you can't work in the same industry for 2 years (I have seen up to 5 years on some) within a certain geographical area, work for a competitor, etc" which is bull****.

    If a competitor offers you a better job in the same industry, and the company you work for right now can fire you at will, you have every right to go work for the new company.

    The confidentiality agreement you had with the previous employer would hold you accountable by law if you share trade secrets you learned at the previous employer, confidential info about the previous employer, etc.

    I think the non-compete clause is complete garbage. That is why I have never signed one and never will. I have signed confidentiality agreements with my employer now because I have a lot of confidential information required to do my job. I will never sign a non-compete clause and most employers will understand why.

    When you work somewhere in a specific industry for 15 years or so, and then you quit for a better opportunity in the same industry. You should be able to take that opportunity. Unfortunately, people often sign non-competes and etc. when first hired on and they never even read them.

    I do agree the OP should seek an attorney though with the situation as it can be sticky since he obviously signed one. However, we don't know what it specifically states since every company has different wording etc.

    Edit: Nice disclaimer! I am seeing there are more and more attorneys on Clutchfans than I thought. :)
     
  19. MadMax

    MadMax Member

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    Unless you signed an agreement saying you won't and the Court finds there was valid consideration...which is usually the provision of confidential information. I'm not making crap up here...I deal with these in court and I write them for my clients. I'm not advocating for them as public policy....honestly, I'm surprised how often they're enforced today compared to even 10 years ago.



    That's good. If you can negotiate them away, then that's great. There are some companies that will not hire you. There are some industries where there's no way you're getting a job there without signing one.
     
  20. Granville

    Granville Member

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    Why don't you just move your snow cone stand a neigborhood or two over? There is no way the parents of your former boss will let him peddle his bike over to your new stand if you move it that far.
     

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