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Question about non-compete agreement

1,980 Views | 7 Replies | Last: 6 yr ago by powerbelly
Señor Chang
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AG

I received an offer for a part-time job with a federal contractor who wants me to sign a 2-year non-compete as part of their application process. I have applied and signed LOIs with several contractors before, but never had to agree to a non-compete. The position is in Texas, so am I correct in thinking the non-compete would be unenforceable here?

I am currently waiting for funding to go through for another position which could be a few months. This position would start immediately, so ideally this would be a short-term job.
E
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AG
Are you from Texas or planning on staying in Texas? because non-competes are totally enforceable these days. How is yours worded, is it just for a certain territory. Since it is for contract work and not full time employment I wouldn't sign it and tell them to go fly a kite.

My company just won a lawsuit over someone leaving for a competitor. My company also just had all employees sign a lengthy non-compete which I had my cousin who is a lawyer look at. He said they are enforceable these days as Texas is becoming more pro-business.
JamesPShelley
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If you're not bringing trade secrets with you... if you're not going to be sharing former client names... if you're not going to be undermining their business... GO FOR IT.

Is your former employer going to take you to court? Unlikely, unless your actions cause them financial harm. So? Don't be a fa at the next gig, sharing trade secrets, etc. I can't imagine any jury would return with a verdict in favor of the previous employer if there was no financial harm. I can't imagine any jury returning with a verdict in favor of the company if all the employee as doing was trying to make a living... in the same line of work.

Companies are just people. Companies don't want bad press. ABC Oil Company suing former employer because he went to work at XYZ. Not likely happening.

People know well enough what they should share with a new employer. Further, if there's ANY question... have an attorney review the non-compete.

It's not as scary as it sounds. Any lawyers want to chime in? I didn't complete law school.

Señor Chang
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AG
This is for a position with a DoD agency, so there are no clients I could take with me if I left. Any "trade secrets" would belong to the government. The exact wording is:

Quote:


5. NON-COMPETE AGREEMENT Recognizing that the various terms of Information are special
and unique assets of the company, the Employee/IC agrees and covenants that for a period of
two years following the termination of this Agreement, whether such termination is voluntary or
involuntary, the Employee/IC will not directly or indirectly engage in any business competitive with
the Employer. _________ Initial Here

This covenant shall apply to, (i) engaging in a business as owner, partner, or agent, (ii) soliciting
any customer of the Employer for the benefit of themselves or a third party that is engaged in such
business. _________ Initial Here

The Employer agrees that this non-compete provision will not adversely affect the Employee/IC's
livelihood. This paragraph is waived if the Employer no longer holds its position as a prime contractor
with the U.S. Government for this work. _________ Initial Here

JamesPShelley
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Seor Chang said:

This is for a position with a DoD agency, so there are no clients I could take with me if I left. Any "trade secrets" would belong to the government. The exact wording is:

Quote:


5. NON-COMPETE AGREEMENT Recognizing that the various terms of Information are special
and unique assets of the company, the Employee/IC agrees and covenants that for a period of
two years following the termination of this Agreement, whether such termination is voluntary or
involuntary, the Employee/IC will not directly or indirectly engage in any business competitive with
the Employer. _________ Initial Here

This covenant shall apply to, (i) engaging in a business as owner, partner, or agent, (ii) soliciting
any customer of the Employer for the benefit of themselves or a third party that is engaged in such
business. _________ Initial Here

The Employer agrees that this non-compete provision will not adversely affect the Employee/IC's
livelihood. This paragraph is waived if the Employer no longer holds its position as a prime contractor
with the U.S. Government for this work. _________ Initial Here


Unless you plan on competing with your former employer, sounds like a go to me.

Unless you plan on, while working DOD, to source and scout your former employer's clients... sounds like a go to me.

The third passage nails it.

I'd go the DOD route.
$30,000 Millionaire
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AG
I've dealt with non compete issues a couple of times. One time I said "f it, you won't do anything" and worked for a competitor anyway, and the next time I felt I had to honor it or they would sue me.

I think the litmus test is honestly really simple, and that is whether or not you're important enough for them to spend a lot of money to sue you. If you're an engineer, just keep quiet and move on. If you're an SVP or C-level exec, they will hunt you down.

Remember that an enforceable non compete generally requires consideration, it must be reasonable in scope / duration, and it has to protect a legitimate business concern. The company suing you probably needs to prove you damaged them in some way.

Practically speaking, your former employer will probably forget about you the day you leave and could care less about what you do next. When the time comes, just shut your mouth, leave gracefully, and try to "slip out the side door".
Greenchiles
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AG
I've always heard from HR that these cases don't hold up in court simply because a corporation can't prevent someone from working.
Bassmaster
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AG
12thmayne said:

I've always heard from HR that these cases don't hold up in court simply because a corporation can't prevent someone from working.
Well, add lawyering to the list of things that HR people suck at.
powerbelly
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AG
Bassmaster said:

12thmayne said:

I've always heard from HR that these cases don't hold up in court simply because a corporation can't prevent someone from working.
Well add lawyering to the list of things that HR people suck at.
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