question on non competes
- Thread starter gunnyhiway
- Start date
I'm not a lawyer, but non-competes are big in my industry. In my experience, if the business is sold to another company and the name is changed, I've seen people leave and compete. However, if it is just new owners/management, then I'd think it would be easier to enforce.
Not a lawyer here, but from my experience, it depends on the state the non-compete is being enforced in, and how it is written. If there is a transfer clause then it would transfer to new ownership.
However, depending on the state, the non-compete might be worthless. There are states out there where courts will state that a business cannot prevent someone from earning a living, and if a non-compete gets in the way they will throw it out. From what I have seen, this typically depends on how broad the non-compete is.
However, depending on the state, the non-compete might be worthless. There are states out there where courts will state that a business cannot prevent someone from earning a living, and if a non-compete gets in the way they will throw it out. From what I have seen, this typically depends on how broad the non-compete is.
Are the new owners maintaining the company as is? That is to say, is the company the same name and/or same business, with all benefits, salary and policies as before? Unless there is a clear change in the company, especially in regard to your position, you are going to have a hard time breaking a non-compete.
same name, same business. My position has changed in that they closed our location and now I'm on the road. I received a car allowance previously, now I'm told my meals while travelling should come out of my car allowance.
You will have to prove that the new manner of doing business, with you being on the road, has significantly altered your lifestyle in violation of your agreement with the previous owner(s). Time to lawyer up, if you are serious, and the new owners will not release you.
I would think the fact they closed your location and that your meals now come out of your car allowance would be enough to void the non-compete. I wouldn't be surprised to see the new ownership try to get you to sign a new agreement.
I'm not an attorney but I believe the non-compete has to specifically state transferability.
I've worked in 2 industries that are big on non-competes. Most have more holes than Swiss cheese or amount to toilet paper, especially in Florida.
I've worked in 2 industries that are big on non-competes. Most have more holes than Swiss cheese or amount to toilet paper, especially in Florida.
There are really two question:
Is the non-compete valid and enforceable?
Will the owners go to the time and trouble of enforcing the agreement?
Is the non-compete valid and enforceable?
Will the owners go to the time and trouble of enforcing the agreement?
This is what is most important. An attorney can answer for you quickly it if is "enforceable", but that will never stop someone from taking legal action. You have to determine is it worth spending $10K+ to defend yourself, regardless of what is right.
If they are too cheap to pay you for meals, they are too cheap to hire legal council to enforce a non compete.
If you're in Fl they are hard to enforce anyway.
If you're in Fl they are hard to enforce anyway.
I've had a non-compete for the past 12 years or so, I always give a copy of the contract to my to-be employer and ask them if they think it will stand. They can use their legal council to review it and go from there. Should be cut and dry. I'm in Florida and they are tough to enforce here. The only time it came into play was when I was moving to CO from FL and then they couldn't enforce it because I was moving out of the area I was working in and couldn't flip any customers.
During my 20 years of sales, I’ve only seen one person have their former employer come after them.
It was a guy I worked with. He sent an email to all his accounts saying how much profit the company made off them. These were our largest accounts in Florida. His plan of sabatoge worked. They all called the next day asking questions and wanting to see a complete breakdown of their monies.
He then left company and went to competition to try and get their business.
Company took him to court and he won. Still cost him over 20k in attorneys,
Long and short, you cant deny a person the right to work.
Non competes are to protect the companies Intellectual Property. So unless your an executive or A brainiac who knows the screct sauce....you should be fine. Just stay away from taking accounts you were actively working at former employer when selling apples to apples. And even then, just be prepared to pay for a good attorney.
It was a guy I worked with. He sent an email to all his accounts saying how much profit the company made off them. These were our largest accounts in Florida. His plan of sabatoge worked. They all called the next day asking questions and wanting to see a complete breakdown of their monies.
He then left company and went to competition to try and get their business.
Company took him to court and he won. Still cost him over 20k in attorneys,
Long and short, you cant deny a person the right to work.
Non competes are to protect the companies Intellectual Property. So unless your an executive or A brainiac who knows the screct sauce....you should be fine. Just stay away from taking accounts you were actively working at former employer when selling apples to apples. And even then, just be prepared to pay for a good attorney.
Last edited:
Trust me, I have personal knowledge of how far $10K gets you in one of these things. Let's just say I have been on the receiving end of a noncompete disagreement. It was one of the most frustrating things I have ever dealt with. I also learned a valuable lesson. Never shoot a large caliber man with a small caliber round. Translation, get the right attorney from jump. Once I moved to an attorney who was not only an expert in labor law, but also my particular industry the suit was dropped after one 9 page letter. It took over a year and more money they I want to remember.$10K may get you an appointment.
What if the previous boss/owner dies from asphyxiation from his pillow while sleeping and the business burns down?
It sounds like the non compete would be null n void. How competitive.
thanks for your responses. The new job would be for a company that sells hundreds of new products and only a few which my current company sells and none that are a big ticket item for the new company.
Unless the new owners are petty and vengeful, I can't imagine they would go to the time and expense of enforcing the non-compete (whether valid and enforcable or not), considering you wouldn't actually be "competing" against them.
Similar threads
Latest posts
-
-
-
-
Basketball Short injury updates on Taylor Bol Bowen, Jerry Deng
- Latest: Bob Ferrante