Questions and Professional Answers

• Non-Compete

  If I signed a non-compete and then left that job and started my own business then came back six months later, sold my assets to my employer and signed bill of sale with the clause that my no compete would begin again. Would that Non-compete still be valid since she didnt have me sign a new non compete?

  • Re: Non-Compete

    Sounds like you breached the original agreement and the sale of your business could be considered settlement of the breach. But that wouldn't on its own terminate the original agreement. Of course, I haven't read the agreements.

    David W. Nance
    DWNance.com founding member of NanceGroup.com

  • Re: Non-Compete

    NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.Absolutely. By signing the agreement stating your non compete would begin again, you have reaffirmed it in writing. If properly worded, this would have the same effect as if you had signed a new non compete agreement. Scott R. Jay, Esq.

    Scott R. Jay
    Law Offices of Scott R. Jay

• Do not compete clause

  I signed a do not compete agreement thirty years ago. I am leaving my current employer and I want to compete with my old employer's list of clients(which I developed) My question, is the do not compete clause enforceble? and for how long? and what kind of sanction would I face? Thank you

  • Re: Do not compete clause

    Without reading the agreement, I cannot comment specifically on your situation. The general rule is that they have to be reasonable as to time and location. Many companies are suing former employees over similar situations as you describe. The best advice is to seek competent counsel in your area to advise you regarding this situation. Good Luck!!!Pat Tracy

    Patrick Tracy
    Patrick J. Tracy, Esq, P.E.,

• Non Compete

  I accepted a job with my current employer about 5 years ago. After I quit the job before and went up to orientation for my current employer, I was informed the I had to sign a non compete. I asked if I could let my lawyer look at it and get back to them later and the HR person said I could not get on the payroll untill the mon compete was signed. I have talked to 5 other sales reps that they were also informed of the non compete only after they had quit their other job. Will this non compete hold up in Texas?

  • Re: Non Compete

    Whether it is valid and enforceable will depend on a variety of issues, but being compelled to sign it is not one of them.

    Roger Evans
    Mathis & Donheiser

• Sales Non-Compete

  I am in a senior sales position with a firm being told to sign a non-compete document. This is a one-year old company and I brought over 95% of my current customers with me and can document that. I am told that non-compete is illegal in CA. I think that they are in the process of selling the firm and want this non-compete in place as a condition of the sale. Is this non-compete enforceable? What is my recourse?

  • Re: Sales Non-Compete

    This is a matter being considered by the 9th circuit as I write. However, the current state of the law as stated in the recent Andersen case is that a non-competition agreement between an employee and employer, prohibiting the employee from performing services for certain former clients, is invalid under Business and Professions Code section 16600 unless it falls within the statutory or "trade secret" exceptions to the statute.I would be willing to discuss some of the issues concerning your situation to see how I may be of assistance.I offer prospective clients an initial consultation of 30 minutes for free. I look forward to speaking with you.Yours truly,BryanBryan C. Becker, Esq.PrincipalLaw Office of Bryan C. BeckerThe Koll Center501 W. Broadway, Suite 800San Diego, CA 92101Toll Free: 877*201*8728Direct: 619*400*4929Fax: 619*400*4810Member, National Association of Consumer Advocateswww.naca.net

    Bryan Becker
    Stutz Artiano Shinoff & Holtz

  • Re: Sales Non-Compete

    Non-compete agreements are not enforceable in California, with some exceptions, as where they are necessary to protect trade secrets. They are rarely upheld by California courts.However, they are legal and enforceable in most other states, so the circumstances of your employment are very important. Whether to sign or not depends on many factors. You should review your situation with an experienced employment law attorney, before signing, to better understand your rights and obligations.

    Michael Kirschbaum
    Law Offices of Michael R. Kirschbaum

  • Re: Sales Non-Compete

    In addition to the other posts -- you cannot be fired for refusing to sign it. You may want to consult with a lawyer about how to proceed. . .

    Alden Knisbacher
    Knisbacher Law Offices

  • Re: Sales Non-Compete

    They are not 'illegal', and can be enforceable if narrowly drafted for limited and legitimate protection of the company, and if entered into at the time of hire. Trying to force one on you now would not succeed. Feel free to contact me if you need legal help with setting the situation straight with the company, or dealing with a wrongful termination or other retaliation if you refuse to sign.

    Terry Nelson
    Nelson & Lawless

• Non-compete clause

  My partner signed a non-compete paper with a company we both worked for. He signed this back in 1999, and the company was sold twice since then. We resently (May of this year) left and started our own company. He did not, at the remember that he had signed the non-compete. Do we have anything to worry about since the non-compete is 8 years old. It was a non-compete for 5 years. Or does the non-compete start when he left the old company, and do these transfer when the company was sold.

  • Re: Non-compete clause

    NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.The non compete clause is likely still valid should the former employer choose to enforce it. The five years most likely runs from the date that your partner leaves the former employer (company) and not the date he began his employment. Scott R. Jay, Esq.

    Scott R. Jay
    Law Offices of Scott R. Jay

• Non-compete contract

  I would like to know if I signed a non-compete agreement with my company and they change my pay structure with out my consent is the non-compete voided?

  • Re: Non-compete contract

    It depends on the language of your contract. If they have breached the agreement by changing your pay structure, and that breach is an event that terminates the contract, then yes the non-compete clause is no longer effective. However, if the contract allows for breach without termination, or if the non-compete survives the termination of the contract, then it is still effective. You'll need to carefully read your contract before taking any action.

    James Vasquez
    In Pacta, PLLC

• no compete

  Is a no compete form binding or is there a way around them? I am now working at a nursing agency that is not doing well and want to go to a competitor but I signed a no compete...any way around it??

  • Re: no compete

    In Georgia a noncompete covenant is enforceable only if (1) the geographic scope of the restriction is clearly defined and must be generally limited to areas where the employee worked, (2) is limited in time (more than 2 years is suspect), and (3) is limited to the types of activities the employee was performing. There is no "bright line" statutory law on this; rather, it is a creature of case law and very much depends on the facts and circumstances. Georgia will not "blue pencil" the agreement, meaning if it is too broad in scope, the court will not rewrite or "blue pencil" it to a smaller, permitted restriction. If it's overbroad, the covenant fails. I have found that most employers in Georgia for one reason or another have overbroad covenants not to compete. I would be glad to review your covenant free of charge and give you an opinion. If you would like to arm yourself with a written legal opinion to ward off your employer in the event of trouble, I can provide you with one for a small fee (assuming it's unenforceable). If the employer comes after you and you need legal defense, I can help you.If you would like to know where to fax or send the agreement if you're interested, e-mail me at wwisong@earthlink.net.

    Wayne Wisong
    Wayne Wisong, Attorney at Law

• Non-Compete agreement

  I signed a non-compete in 1-2002. In 2003 my employer reduced my base salary and they are talking about doing it again. Does this have any bearing on the non-compete? Am I still bound by it?Thanks

  • Re: Non-Compete agreement

    Perhaps. It depends on a number of factors not the least of which is the actual terms of the agreement.

    Alan Crone
    Crone & Mason, PLC

  • Re: Non-Compete agreement

    It may depend on the language of the agreement. Non-compete agreements are generally difficult to enforce, though that is not a definite answer. There are various factors, most of which have to do with the reasonableness of the non-compete. I would have to see the non-compete agreement to give a more definite answer.

    Harvey Harris
    Harris Law Firm

• Question about no compete clause of business I purchased

  I recently purchased a business and the seller signed a contract that includes a no compete clause. The no compete states the seller will not compete against me for 10 years. I was recently informed that 10 years is an unreasonable legnth of time by GA law. I believe the seller is now competeing against me and I know that he thinks the no compete is void due to the 10 year statement. Is the no compete void?

  • Re: Question about no compete clause of business I purchased

    Not necessarily, although ten years is a long time. There are three factors a court considers when enforcing a non-compete: 1) length of time, 2) scope, and 3) geographic location. Remember, that courts do not generally like to limit a person’s ability to make a living.If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.Glenn M. Lyon, EsqMacGregor Lyon, LLCPromenade II1230 Peachtree Street NESuite 1900Atlanta Georgia 30309Phone 404.942.3545Fax 404.795.0993glyon@macgregorlyon.comwww.macgregorlyon.com Confidentiality NoticeThis message is being sent by or on behalf of a lawyer. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged or confidential or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy or disseminate this message or any part of it. If you have received this message in error, please notify the sender immediately by e-mail and delete all copies of the message.

    Glenn M. Lyon, Esq.
    MacGREGOR LYON, LLC

• Employee Non-Compete

  I signed a non-compete with a former company. I would like to know what the statute of limitations is for a Non-compete in Utah.

  • Re: Employee Non-Compete

    The Utah statute of limitations on written contracts is 6 years. You might consult an attorney in your area if that is a problem for you. Non-compete agreements are often not enforceable and it would take a review of your agreement and the circumstances to give you a more definitive answer.

    Mel Larew
    Attorney at Law