Employment law advice needed - Are non-compete agreements enforceable?

[cantdrv55]

I have an interview next week with a firm that competes with my current employer in a couple of markets. I will be selling to two markets, one of which I don't personally currently sell to now. The recruiter who represents the prospective employer says the non-compete won't be an issue but I don't know if that is factual. I know I should probably consult an attorney but I thought I'd pass it by the Pelican brain trust.

I had a phone interview with the sales director yesterday and the recruiter told me just now that the director wants to meet me next week. If he feels I fit the culture, the job is mine. I accepted the interview appointment but if I find out the non-compete is binding, I will cancel the meeting.

What do you guys know about non-competes? Thanks in advance!

[rusnak]

Which state are you in?

[id10t]

Which state are you in?

And what terms exactly were in the contract? State is important -in Cali a noncompete isnt worth the paper it is on

[cantdrv55]

I will find the document and read the fine print. I am in CA.

[dad911]

I'd consult a lawyer. Also ask if the prospective employer will cover your legal expenses/damages if you get sued.

Cost a friend of mine alot of time and money, and as I recall he was unable to work for the new company until suit was settled. If you're old (current) employer is vindictive, they may not win, but can screw with you.

[Rick Lee]

I had a thread on this a while back. My last company poached some folks from competitors and vice versa. For a few of them, angry letters were sent back and forth, but it didn't go any farther than that. However, it's a niche industry, where everyone knows each other, so they don't want to get too serious, since they all do it to each other.

[Hugh R]

Generally in CA I believe its unenforceable unless they pay you what you would have earned. Usually in an upfront contract.

[cstreit]

Very rare that a no-compete is enforceable. Generally you have a "right to work". Particularly in California I've never see one hold up. Ever.

No judge is going to say "Sorry Mr. Cantdrv, you have to find a new career."

[jyl]

A state by state thing. In CA non-competes are not often enforced. Not so in other states. That is my understanding as a former lawyer but not a current lawyer, so maybe it is worth 3 cents instead of 2, but not worth a nickel.

I know a good employment lawyer in SF to refer you to, if you need an answer from someone who actually knows. He only represents employees.

[Baz]

Originally Posted by cantdrv55

I will find the document and read the fine print. I am in CA.

CAnada or CAlifornia?

[cantdrv55]

Originally Posted by Baz

CAnada or CAlifornia?

California

[cantdrv55]

Originally Posted by jyl

A state by state thing. In CA non-competes are not often enforced. Not so in other states. That is my understanding as a former lawyer but not a current lawyer, so maybe it is worth 3 cents instead of 2, but not worth a nickel.

I know a good employment lawyer in SF to refer you to, if you need an answer from someone who actually knows. He only represents employees.

I may contact you about your lawyer friend next week. Thanks John.

[Rot 911]

As others have already told you, it varies from state to state. I just finished drafting a non compete agreement for one of my corporate clients. Generally speaking, most states will hold as void the part of the agreement that prohibits the employee from working in the field they are presently working in. However, most states will uphold the part of the agreement that prohibits the employee from trying to use the company's trade secrets, accounts, client lists, etc.

[on2wheels52]

When I sell my shop I expect to offer a non-compete as part of the deal. Is 2-3 years normal?
Jim

[Icemaster]

Originally Posted by Hugh R

Generally in CA I believe its unenforceable unless they pay you what you would have earned. Usually in an upfront contract.

This. Unless they pay you not to work, there's enough precedent stating that you cannot be denied making a living in your field. It's a free market.

Basically it's what Chris said.

[Rick Lee]

I think it also matters if your current employer paid you a bonus to sign the non-compete or just made you sign it to keep your job.

[Don Plumley]

As others have said, broad non-competes in California are rarely enforced to the point that they are laughable. If there is consideration (we pay you X, you don't work for competition for Y), reasonable geographic restriction, then those can be enforced.

I have removed non-compete from our agreements, but been very careful with IP and non-solicit (customers or employees or suppliers) language. Those are quite enforceable and I would.

[rusnak]

Unless you work for the mob. Are you a wise guy? If so, never go against the family.....

[mattdavis11]

Mostly unenforceable. Due to circumstances beyond my control, I became unemployed. The new owner wanted me for a sales position, but I didn't want the gig. He did let me know I had signed a non compete, I let him know that my company was in existence prior to my signing an agreement, had remained active to date, and offers several elements that his does not.

He was nervous.

[wdfifteen]

Basically unenforceable. I had an employee successfully scheme to waltz away with a client. We spent hundreds of hours wooing this client, brought them on board, and the employee started his own company with them as his only client. They're both out of business now (neither had any idea what they were doing, and it cost them). Their failure was justice for sure, but it seemed pretty blatant and I really wanted my hours back. I got no love from the AG.