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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 18854
Experience:  Employment/Labor Law Litigation
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I signed a non compete as a director, I was demoted to

Customer Question

I signed a non compete as a director, I was demoted to director in training I now want to leave the company for a director position. is this a problem??
Submitted: 10 months ago.
Category: Employment Law
Expert:  Allen M., Esq. replied 10 months ago.

Thank you for trusting your question to JA today. I am a licensed attorney with over a decade of law practice and over 20 years of experience in the legal field. I’m happy to be of assistance.

That's going to depend entirely on the wording of the non-compete agreement. Nothing about a demotion would automatically remove the application of a non-compete agreement unless the agreement itself notes that your "consideration" or what you received was employment at a specific position and pay rate.

Then you'd be able to claim that the contract was no longer applicable, as they breached the agreement and removed you from the position.

That being said, most non-compete agreements are not written that fairly. They tend to lean in the direction of the employer, allowing changes in the terms of employment without negating the non-compete portion itself. Without seeing the contract, I would have to assume that it is a problem for you to take this job and only with a properly worded contract in your favor would you be able to safely ignore the non-compete provision.

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