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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 18856
Experience:  Employment/Labor Law Litigation
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I need to know what my rights are as an employer that acquired

Customer Question

I need to know what my rights are as an employer that acquired a business with employees covered by a non-compete agreement
JA: The Employment Lawyer will need to help you with this. Have you consulted a lawyer yet?
Customer: I am looking for a new lawyer to help me with this issue
JA: Please give me a bit more information, so we can help you best.
Customer: The employee signed a non-compete with a business which we bought a year ago (which was absorbed into our existing buisniess) to include all rights, contracts,agreements, etc and continued to work as an employee but is now actively soliciting customers to follow them when they leave our business
JA: Got it. The Employment Lawyer will know how to help you. Anything else I can tell the Employment Lawyer before I connect you two?
Customer: I have the documents ready to send. I have never used this site and don't know how the attorney/client relationship works here
JA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Employment Lawyer about your situation and connect you two.
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 will depend on the wording of the individual non-compete agreements. Just having bought a business does not automatically make you legally vested in every contract they may have had. The contracts themselves have a lot to say about whether or not they are assignable and whether or not they extend rights to "successors in interest" which is the phrase you should be looking for in those non-compete agreements. If the contracts extends rights of enforcement to successors in interest, then you'd be able to enforce those agreements. However, you have to be sure that you abide by the requirements if the contract on the employer. You must maintain the consideration they were originally offered to enter into the agreement in the first place. All that said, you have another recourse against this employee. Non-competes are necessary for former employees, because one they are former employees there has to be some sort of contract limiting their actions (which you may possibly have here, again depending on the wording of the non-compete). With present employees though, common law concepts of "breach of loyalty" apply, even without a non compete contract. Essentially, you may not actively compete with your current employer because this is considered an unfair business practice. You could sue this employee for those actions alone, even without an enforceable non-compete. There is no attorney client relationship. That's how we can assist in this forum. We don't actively disclose any information and our working with this site (I'm a contractor) requires confidentiality to the extent you request it. If you have any further questions, please let me know. I invite follow up questions, so use REPLY for those. If you have no further questions then good luck going forward and please do not forget to rate my service with a top-three rating so that I receive credit for working with you today. Also, feel free to request me in the future, if you have questions concerning a different matter.
Expert:  Allen M., Esq. replied 10 months ago.
Hello, I wanted to check in and make sure that there was not any additional information that you required. If you need further assistance, please use REPLY and ask me for any additional information you may need. If not, take care and have a great day.

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