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Zachary
Zachary, Lawyer
Category: Employment Law
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Experience:  Contracts, Wrongful termination and discrimination
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Enforceability of non-compete clauses

Resolved Question:

Enforceability of non-compete clauses
Submitted: 1 year ago.
Category: Employment Law
Expert:  Zachary replied 1 year ago.
Hi,

What is your specific question regarding this issue?

-ZDN
Customer: replied 1 year ago.


I have a non-compete clause with my current employer with whom I have worked for 10 months. If I leave to join another company in the same industry but does not directly or indirectly compete with them what is my exposure?


 

Expert:  Zachary replied 1 year ago.
It depends on a lot of different variables. I will need you to answer the following questions in order to answer you.

1. Please provide the exact language of the non-compete clause.

2. Please state your current job title and job description.

3. Please state the industry in which you work.

4. Please state the job title and job description of the company to which you wish to go.

5. If the company is in the same industry, why do you believe they do not compete with your current employer?

I look forward to hearing back from you.

-ZDN
Customer: replied 1 year ago.

1.


You agree that you will not, at any time during your employment with


Employer or for a period of 2 years from the termination of your employment however caused (whether your employment is terminated by you or the Employer and whether with or without cause or in breach of this Agreement), directly or indirectly, for himself/herself or any third party, solicit or accept employment or engage in any business


or activity which is directly or indirectly in competition with Employer, or in a related position in the Automotive or Transportation industry. The geographical area to which this non-competition agreement applies is any area in which Employer currently solicits or conducts business, and/or any area in which Employer plans to solicit or conduct business for a period of two years after Employee leaves employment with Employer. Both parties agree that the time and scope of this Non-Competition agreement are reasonable. If a court finds the time and/or scope of this Non-Competition agreement unreasonable, it should reasonably modify the agreement to protect the Employer to the maximum permitted by law.



2. Managing Director however my title and role has changed twice since the original agreement was signed.



3. Digital (websites) Automotive (we make websites for dealers) I am considering leaving to go work for an agency or a reputation management company that services GM and Ford directly



4. I would be the "Manager of Strategic Relationships"



5. I will not be "selling" or soliciting dealers like I do now. I would work directly with the factories and manage the vendor/client relationship B2B whereas I am more B2C.

Expert:  Zachary replied 1 year ago.
Thank you for your response.

My first comment is that the non-compete agreement is unreasonably broad and would definitely be either thrown out or modified by a court.

My second comment is that the new job would not be in violation of your non-compete agreement. That being said, you would be wise to send a copy of the contract to your new employer (after they hire you) and ask for them to provide you current employer with assurance that there is no competition involved in your job.

Please let me know if you have further questions on this issue. Also, please remember to rate my services positively so that I might be paid for my work by the website.

Best Regards,
ZDN
Zachary, Lawyer
Category: Employment Law
Satisfied Customers: 3634
Experience: Contracts, Wrongful termination and discrimination
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