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Hello,
my company was recently acquired, and I was asked to again sign my non-compete, as the original was supposedly lost. The non-compete carries over to the new company. The specifics of the non-compete state "While employee by company and for (12) months after Employee's employment terminates (the "Non-Competition Period"), Employee shall not, directly or indirectly, whether as owner, partner, investor, consultant, agent, employee, co-venturer or otherwise, compete with Company or any of its affiliates within a 50 mile radius of any PSG office or undertake any planning for any business competitive with Copany or any of its affiliates". The company in question is a consulting firm that provides consulting services for the installation, configuring, training, etc, on all Microsoft products. Since my residence is within a 50 mile radius of the nearest company office, I affectively cannot even work out of my own home in the same field (time for a career change?). Therefore, I most likely will not even be able to provide for my family for a period of 1 year after resigning from this company. In my opinion this is too broad and unenforceable
Submitted: 109 days and 20 hours ago.
Category: Employment Law
Value: $30
Status: AWAITING CUSTOMER ACTION
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Optional Information
State/Country: Massachusetts
Already Tried:
I have not tried anything just yet. I am preparing myself to leave this company. I have heard in the past this employer vigoriously seeks legal recourse to enforce this agreement. upon my recent signing of this document, I was told to either sign, or resign.
Accepted Answer
-Could you explain your situation a little more?
Please provide your state, and the state laws the agreement states it follows, as state laws are different in regards to restrictive covenants
Expert:
kumar paturi
Pos. Feedback:
100.0 %
Accepts:
Answered:
8/5/2009
Employment Lawyer
10 years employment law experience
109 days and 20 hours ago.
Reply
The company was based in Massachusetts prior to the acquisition several weeks ago. The agreement references Marlboro MA, which was the location of the office I was based out of. Upon the acquisition, I had to sign a confirmation of employment, which carried all the obligations of the previous agreement.
Posted by
kumar paturi
109 days and 18 hours ago.
Answer
In Mass, the courts have a history of enforcing these agreements, however recent trends do favor you,also as in JANUARY a bill was proposed to deny all non compete agreements. I do not think your specific position is unique to your company and any trade secrets or intellectual property would be lost, therefore I think it would be unenforceable.
In Mass, the agreements must pass muster with the courts, in three specific ways.
First, the agreement must protect a legitimate business interest and not “ordinary” competition.
In other words, should a sheet metal supplier enter into a non-competition agreement with its sales manager, it will not be enforced if the sales manager is prohibited from selling ceramic tile, for instance.
Next, the agreement must be reasonable in terms of geographic territory.
What is reasonable depends largely on the specific circumstances. The Massachusetts courts have upheld worldwide restrictions, where the business was both unique and sold to limited number of customers in an international marketplace.
On the other hand, two mile restrictions may be held to be unreasonable for a pizza shop, where there may be six or seven other shops within the two mile radius.
Finally, the courts will look to the duration of the agreement. As a general principle, the shorter the duration the more likely it will be found to be reasonable.
Typically, assuming all of the other criteria are met, an agreement of one or two years will ordinarily be found to be reasonable.
Non-compete agreements may be signed at the initiation of employment, or during employment.
Until recently, the Massachusetts courts have uniformly held that if a non-compete agreement is signed once employment is commenced, there must be some new consideration, such as a bonus. In my reading of current case law in MASS, when the employer hires you if the job position is different a new non compete must be made or if a new comnpany is joined they should have offered a bonus at the time of signing.
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91 days and 4 hours ago.
Reply
Kumar,
thank you for this. Question, how do I go about finding a reasonbly priced attorney to represent me? I am going to need someone immediately.
Posted by
kumar paturi
90 days and 13 hours ago.
Answer
CONTACT THE LOCAL BAR ASSOCIATION THEIR ARE MANY SMALL FIRM ATTORNEYS WHO CAN DO THIS
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