If an employee signes a non-compete clause 6 months after being hired, can the employee compete and/or work for another company that offers the same services? Specifically provide similar services to a client from his/her previous job? The non-compete clause states that one will not work for an existing client for a one year. However, this person will not work for the existing client but is employed by another company that provides these services as an ancillary service.
Optional Information: New York
Hello,That is a great question,Non-Compete clause's are valid in New York provided that they are not over broad or overbearing.There is a three prong test that the Court of Appeals used in a 1999 case (SOURCE)1. The restraint cannot be greater then necessary to secure a legitimate interest.2. The restraint must not impose an undue hardship on the employee3. The restraint must not be injurious to the public.The above situation sounds like a very reasonable non-compete clause.Be careful because if you do breach that, you could also be sued for contract interference for interfering with the old existing contractual relationship.I hope that helps. If you are happy click ACCEPT to close the question.CheersFlagbridge39001.7499278125
Reply to Flagbridge-ADR's Post: Thank you for the answer. Just one more point for clearification. To be sued for interfearing with an existing contract. If the client approaches my new company for a competative bid, then would this be classified as interfearing with an existing contract?
If the client came out of their own volition and had no prompting from you whatsoever, then it would be hard to prove. It is a hard Tort to prove, but it gets added a lot just to over inflate the situation. Hell i always recommend people look for it just to have something else to argue if needed.To really stay out of trouble don't get involved with this client if they break an existing contract. Wait until that existing contract would have been over before you personally get involvedI hope that helps.
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