Non Compete at Work-Any of you guys had to fight?

[cod007]

2 wrongs = 1 right?.........he signed the document, now try to steal 'their' clients 'they' paid for because he is unhappy. If it matters that much, take them to court (legally), but don't crawfish on your agreement and see what they do....just my .02. Different strokes for different folks, I guess.

Hope/Pray the OP has clarity here and makes a wise decision.

Even a knucklehead like me knows that a contract is an agreement between 2 parties and when either side breeches their side of the agreement, it voids the entire contract or at the very least changes it.

 

[bozeman]

As he stated, they made verbal agreements, not in writing.......is it mis-interpretation, different meaning of words? You sign your name to something, you better be ready to stand behind it.........wow.....hard to believe this catches so much flack. Cut from a different cloth..........

I am coming from personal experience with a very good friend who went through something similar....he ignored ALOT of people telling him where he was heading, disregarded and it cost him greatly........

 

[Vandal 44]

I went through this a little over a year ago.

I worked for XYZ company for 13 years, when I hired on with them back in 2008 I signed a two year non-compete. In 2010 the company sold to a private equity firm, when the private equity form made the purchase it was an asset and lability purchase, meaning the private equity firm now owned the rights to my non-compete (nothing I could do) When I found out that new hires only signed a 1 year non-compete I went to upper management and asked to sign a new non-compete and they let me. My new non-compete was a 1 year instead of a 2 years.

I brought a lot of new business to XYZ company and made them a lot of money. Keep in mind that these where customer that I worked on and sold them on why they should do business with me. No one from XYZ company helped with prospecting or signing all these clients

Fast forward to January 2020 the private equity firm was trying to sell the company, at this point I had enough of the travel and my commission getting cut. traveling more, longer hours and less pay. They could all suck it.

I knew I was going to leave so I got everything lined up way in advance to me giving my resignation. The best thing I did was get with an employment attorney and one that had a strong background in contract law. My attorney went through my non-compete/non-solicitation contract (there is a difference). He walked me through what I could and couldn't do.

One question I asked him, If a client of XYZ company wants to leave and do business with me what needs to happen so I do not get in trouble? His response "you will get a letter of Cease-and-Desist I guarantee it. My next question how do I fight that? His response the client of XYZ needs to write "Mr. Vandal 44 did not solicit our business we perused Mr. Vandal 44. Our company signed up to do business with Mr. Vandal 44 back in (Blank year) and Mr. Vandal 44 has taken care of our account and we want to keep it that. Mr. Vandal 44 did not solicit our business in anyway," (this is paraphrased) but it went on the company letter head

I resigned and went out on my own. I told all my clients what I was doing. I had six clients of XYZ company ask me for a proposal. I told the owners that I would be more than happy too, I told them what needs to be done and if they where not ok with doing that I would understand. All six clients of XYZ wrote a letter.

When I took the six clients from XYZ Company, I received big certified package from the attorneys of XYZ Company. I took the certified package to my attorney along with the letter from the six clients ( there was a little more leg work on my end but not much)

After it was all done I won, the only thing I had to pay was $6,000 to my attorney. For me it was money well spent.

My advice and take it for what its worth. Before you make any crazy decision, spend the money and have a good contract/employment attorney go through your current employment

 

[DIY]

I went through this a little over a year ago.

I worked for XYZ company for 13 years, when I hired on with them back in 2008 I signed a two year non-compete. In 2010 the company sold to a private equity firm, when the private equity form made the purchase it was an asset and lability purchase, meaning the private equity firm now owned the rights to my non-compete (nothing I could do) When I found out that new hires only signed a 1 year non-compete I went to upper management and asked to sign a new non-compete and they let me. My new non-compete was a 1 year instead of a 2 years.

I brought a lot of new business to XYZ company and made them a lot of money. Keep in mind that these where customer that I worked on and sold them on why they should do business with me. No one from XYZ company helped with prospecting or signing all these clients

Fast forward to January 2020 the private equity firm was trying to sell the company, at this point I had enough of the travel and my commission getting cut. traveling more, longer hours and less pay. They could all suck it.

I knew I was going to leave so I got everything lined up way in advance to me giving my resignation. The best thing I did was get with an employment attorney and one that had a strong background in contract law. My attorney went through my non-compete/non-solicitation contract (there is a difference). He walked me through what I could and couldn't do.

One question I asked him, If a client of XYZ company wants to leave and do business with me what needs to happen so I do not get in trouble? His response "you will get a letter of Cease-and-Desist I guarantee it. My next question how do I fight that? His response the client of XYZ needs to write "Mr. Vandal 44 did not solicit our business we perused Mr. Vandal 44. Our company signed up to do business with Mr. Vandal 44 back in (Blank year) and Mr. Vandal 44 has taken care of our account and we want to keep it that. Mr. Vandal 44 did not solicit our business in anyway," (this is paraphrased) but it went on the company letter head

I resigned and went out on my own. I told all my clients what I was doing. I had six clients of XYZ company ask me for a proposal. I told the owners that I would be more than happy too, I told them what needs to be done and if they where not ok with doing that I would understand. All six clients of XYZ wrote a letter.

When I took the six clients from XYZ Company, I received big certified package from the attorneys of XYZ Company. I took the certified package to my attorney along with the letter from the six clients ( there was a little more leg work on my end but not much)

After it was all done I won, the only thing I had to pay was $6,000 to my attorney. For me it was money well spent.

My advice and take it for what its worth. Before you make any crazy decision, spend the money and have a good contract/employment attorney go through your current employment

Thank u much for the advice

 

[Will_m]

Do not take any advice from anyone on this forum. There are a whole host of other possible defenses beyond the enforceability of the specific non-compete provision itself and there is no way of knowing what those are without looking at the contract and discussing your employment time with not just an attorney, but a competent attorney. These things get struck all the time in court, some get blue-lined but there are also ones that are upheld. Do not base your decision on anecdotal evidence.

 

[MattB]

So, you feel only one side of the party has to keep their word? What about the company that is NOT doing their part of the contract? Why dont they have to suck it up and keep their word?

Rewording for clarity: very likely only one side has obligations under the non-compete, so the company would have no legal obligation to keep its word. I would very highly doubt that the company obligated itself to do any specific thing in the non-compete.
__________________

As stated above, get a lawyer to review the non-compete and provide counsel based on the laws of your state or the state whose laws apply. In some states like CA, non-competes are not legally enforceable.

 

[Opah]

They are restructuring the extra chiefs are theirs and the rest are excess chiefs soon to be X chiefs.
It usually only effects the upper managers, the staff will only be effected by changes in the ways things get done.
They are prevalent in California and basically non-in forcible, it is a scare tactic.
But none the less check with a legal eagle, its up to you to do your do diligence.

 

[Bubblehide]

Vandal 44 above is spot on from my limited experienced. And what he has to say appears to apply to the OP's situation.​

Opha above is mixing things up. I live in Ca. Opah is talking about Ca being a right to work state. I signed a non-compete contract with a agency that specializes in contracting professional services such as mine. So I was contracted to a third party through the contract agency. The third party let me know that they wanted to hire me, so I applied for the position and subsequently got hired. The agency sent me a threatening letter once they found out. However, in my case, since Ca is a right to work state, they had no legal standing. I simply let them know I was well informed of the relevant laws, and that I would counter sue. I never heard from them again.

 

[tim tarras]

2 wrongs = 1 right?

No.... but 3 lefts = 1 right.

 

[Squincher]

Show up every day barefoot and shirtless until they agree to waive the non-compete in exchange for you not coming back. Fortune favors the bold.

 

[DIY]

thats a question I have....Can u get fired and have them still enforce the NC

 

[Ultraheight]

Quick Story to keep it simple.

Old company bought out by new company.
Sort of forced into signing to keep job.
They paid $ for my signature.
New company promises to keep things the same, however a lot is changing.
Things are looking different than before.
Seems like a lot of Chiefs and not enough Indians.
Going in a bad direction for business.
I know the first step is a lawyer, but


The question I have?

Did anyone of u guys fight a non compete and win?

Biden admin DOJ is fighting these silly contracts, it stifles business. Also no one hardly ever enforces them, I would say go for it with a little advice from a local lawyer

 

[roadrunner]

I appreciate the advice... They however made verbal promises that influenced my decision to go with them and it is not matching up now. If the promises they made they honored Id would honor my word. this is not a challenge against your post

So they lied to you...

The fact that you were paid to sign the NC means they likely will pursue if you violate the agreement. It may only be threatening letters but that will depend on how deep into their revenue you get. Our company attorney considers this sport. He enjoys enforcing the clause.

Like others have said. Invest the time with an attorney consultation.

The inherent problem with attorneys. All that has to be proved is signing under duress...

Do not take any advice from anyone on this forum. There are a whole host of other possible defenses beyond the enforceability of the specific non-compete provision itself and there is no way of knowing what those are without looking at the contract and discussing your employment time with not just an attorney, but a competent attorney. These things get struck all the time in court, some get blue-lined but there are also ones that are upheld. Do not base your decision on anecdotal evidence.

Anytime you think you need to consult legal services before you take employment for "consideration of" is in by itself fraudulent of the employer.

Attorney's be damned...

 

[Where's Bruce?]

NCAs are often unenforceable depending on the state you're in. I would have to read the text to determine if the company has any obligation NOT TO CHANGE THINGS as they promised you. Odds are such language is not in your contract. If it is, then you can argue that the agreement is no longer valid as the company breached the terms; first forcing you to seek employment elsewhere. I have successfully beaten such a claim but as I said, it depends on the state and circumstances involved. Do these changes impact just you or a group of people who collectively represent a core part of the business that could (if united) greatly impact the company with a walkout & class action suit? Measure the leverage carefully.

 

[jmez]

South Dakota is a right to work state. Unless the employer does something egregious, your non compete will be upheld.

 

[DIY]

NCAs are often unenforceable depending on the state you're in. I would have to read the text to determine if the company has any obligation NOT TO CHANGE THINGS as they promised you. Odds are such language is not in your contract. If it is, then you can argue that the agreement is no longer valid as the company breached the terms; first forcing you to seek employment elsewhere. I have successfully beaten such a claim but as I said, it depends on the state and circumstances involved. Do these changes impact just you or a group of people who collectively represent a core part of the business that could (if united) greatly impact the company with a walkout & class action suit? Measure the leverage carefully.

I would say 2-3 employees will walk at once. There is a total of 5 core people that make a majority of the sales

 

[307]

Show up every day barefoot and shirtless until they agree to waive the non-compete in exchange for you not coming back. Fortune favors the bold.

Pssssshhhttt... Rookie.

Go Full Monty.

Once you get out of jail, you'll control your own destiny.

 

[DIY]

Show up every day barefoot and shirtless until they agree to waive the non-compete in exchange for you not coming back. Fortune favors the bold.

The problem is I dont think they will fire us. There has been yelling going on and they seem to still keep us

 

[WRM]

Here's some free legal advice--you need to pay for some legal advice in your state. And, you probably still won't get a clear answer. It's highly state and case specific. Best o luck.

 

[BigNate]

You can't solicit business from former clients, they can however call on your new company.

Trade secrets though can be sketchy. You can't unlearn anything, but if you are in a business with specific technology that could be argued in court, you'd probably loose.

It probably isn't much to work around, but as has been mentioned, a lawyer would be worth it.