How do I get around a non-compete clause?
I was recently approached by a different company in the industry I work for, and offered a job. Every thing, benefits, allowances, salary, everything is twice what I’m making now. It’s a no brainer. But I did sign a non-compete clause 7 years ago when I hired in with the company I currently work for.
Can you give me any advice or suggestions?
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9 Answers
When you signed the non-compete clause, did it specify a length of time?
I think it was 6 months to a year, but I don’t remember exactly. I’ll have to look it up. I wondered if having the new company changing my job title might do the trick?
Check out the non-compete clause. I think it usually means you won’t take clients from the old company, not thtat you won’t take a job in the same field.
It seems to me that a couple of years ago, there was a lawsuit, The guy who wanted to move to a new job WON the suit. If I remember correctly, he won because:
a) a non-compete is essentially indentured servitude, and was restraining his right to make a living any way he wanted.
b) the NC document was non-enforceable because it tied the person to future vents (or something like that)
I am not lawyer and I don’t remember the details, but do some research – this was no more than a couple of years ago.
Non-compete clauses about not being able to take a job in the same arena are in a gray area of the law. It would probably be difficult for your old employer to enforce. Just make sure you take nothing (papers, books, etc.) from your current job.
Don’t tell them (or anyone you work with) where you are going.
The non-compete usually includes a length of time. It may state that customers and current contacts, for the length of time, cannot be contacted for business purposes. It is not the title but your activity and interaction in the new position.
Confidentiality agreements cover any company private, confidential information and proprietary processes are not to be shared, also for a length of time.
I’m not a lawyer but have had to sign many NC and confidentiality agrements
A non-compete agreement, or covenant not to compete, can’t prevent you from leaving your current job or accepting a position elsewhere. Your employer can’t force you to stay; the 13th amendment to the Constitution prohibits “involuntary servitude,” and the U.S. fought a civil war over this very matter. Also, your current employer can’t stop you from using your job skills to work and earn a livelihood.
Courts and judges are predisposed to disliking non-compete agreement; the presumption is that they’re invalid bullying tactics imposed by employers. Fair competition’s considered to be a good thing in this economy, and the legal system wants people to be gainfully-employed, responsible members of society. Impediments to healthy competition or earning an income are generally looked upon unfavorably. In some states, non-compete agreements are automatically void as a matter of law. In other states, they apply only to owners and key executives, not to rank-and-file employees. In still other states, they’re valid only to protect legitimate business interests, such as preventing someone from stealing a trade secret or leaving with client files.
You might want to do some online research about your own state’s law. Regardless of where you live, however, your current employer can’t violate public policy or oppressively restrict your ability to earn a living.
In my area, the new company buys out the old company in regards to the non-compete.
Honestly, unless you are in the VP layer or are bringing over intellectual property, it is highly unlikely that the old company will not do anything if you move. They do not even have the right to know where you go.
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