Trade Secret Attorney, Non-Compete Agreement Attorney: What Every Employee Should Know About Non-Compete, Non-Solicitation Agreements

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12/01/2005

Comments

If you are an employee who signed a noncompete agreement or confidentiality agreement, you need to understand that these contracts are often enforceable to the extent they are reasonable. If you are changing jobs or looking at changing employment, you need to fully understand what limitations you may be operating under under your noncompete contract. You certainly don't want to quit without knowing whether or not you might get sued for violation of the non-compete and whether or not you have a real risk of losing that lawsuit.

What if the business closes or stops providing the service i was providing? Does that nullify the non compete?

I started a job 5 years ago without any contracts. Last year we were told to sign a non compete or we would be terminated. There was no compensation offered. I would like to change jobs but the contract forces me out of the business I do.

We used to own a manufacturing company and sold out to a foreign company three years ago. Our business was global, manufacturing and selling automated truck washes. At the closing all sellers had to sign very tight non-compete agreements. New owners and relations to them did not work well and all former owners have now left the company. I - as the key sales person for the company - was offered a part-time sales consulting job from our Australian dealer at very lucrative terms selling our company's products to their mining industry. Due to the bad relationship with the new owners (with most company employees) they are trying to enforce the non-compete contract to keep me from working for their own dealer selling what I always used to sell - their own stuff.
I have found no previous cases where non-compete agreements have been tried to be enforced on these grounds.
The matter is getting quite hot as the dealer in Australia had to turn down the offer sent to me previously as they were told that I cannot be hired due to my non-compete agreement. We are talking here about hundreds of thousands of dollars in compensation that I will not see.
The new owners recognized that I would not be competing against them as I would be promoting and selling their equipment but that the language in my contract prevented me working in this industry.

How can they keep me from doing my job, the one I was trained for? I signed the no compete contract but really had no choice if I wanted the job.

I am an automotive recruiter. I just had a situation where a poorly written, non-enforceable non-compete prevented the hiring of one of my candidates. The potential legal costs could approach 100k. This caused the hiring company to rescind it's offer. My advice, either don't sign them or negotiate something reasonable that you're willing to live with.

Christine, why don't you try to provide better service to your customers than your employees can when they leave you? Stop making excuses about how it affects your business badly and face the facts: non-competes are cheating in the face of being unable to compete in what essentially should be a free market.

I am looking for a non-compete contract just because I was the nice guy and twice now I have had 2 employees leave me and take children from my daycare. This time it could cost me over a thousand dollars a month loss. I am sick of treating my staff the way I would want to be treated then getting stabbed in the back and hearing they have been talking to my customers behind my back and making arrangements to leave me and assume child care from one of my staff instead. I need to do something because just when I get my clientel built up one of my own takes it from me.

NON COMPETE JOBS ARE SCARE TACTICS BY SUCH EMPLOYERS THAT WANT ONLY CONTROL OVER EVRYONES LIVELY HOOD. AGAIN NON COMPETITIVE LAWS OR SUCH AGREEMENTS ARE USELESS. I SAY SO SUE ME IF YOU WANT .IT COST THEM MORE IN MONEY AND TIME IN COURT ,THEN ALL YOU HAVE TO DO IS FILE BANKRUPTCY AND NO ONE WINS. DONE THIS THREE TIMES AND WILL DO IT AGIN AND AGIN, AGIN AND DRAIN THE COURT SYSTEM IN TIME AND MONEY. OR BETTER YET AS IVE DONE BEFORE DONT LIST THE COMPNAY ON YOUR RESUME OR APPLICATION INWHICH ALSO HAS BEEN DONE. MICHIGAN LAW NEEDS TO STAY IN MICHIGAN, AS DOES OTHER STATES LAW TO EMPLOYEMENT FOR A SPECIFIC JOB. AS TO TRADE SECRETS i CAN SEE THAT IF LETS SAY YOU INVENT SOMETHING FFOR THE COMPANY AND THEY BUY IT oK THATS REASONABLE.BUT AS TO AGIN AS STATED A SECURITY COMPANIES TRADE SECRETS NO!!

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