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Non Compete Agreement Questions

What is a non compete agreement?

The non compete agreement definition states that this agreement is many times planned as part of a simple employment contract that is included as a document that is reviewed and then signed when beginning employment. For the most part the non compete agreement makes sure that before being terminated the employee will not take on certain activities that will put the individual in straight competition with their other previous employer. The terms of the non compete agreement can vary and are subject to the local laws when dealing with employment. The non compete agreement is normally successful to make sure that the employees do not use proprietary information to turn away customers and damage the former employer.

Is a non compete agreement only effective in certain states and for a certain time period?

A non compete agreement is normally enforceable. The state laws and case law can sometimes limit the non compete to certain places or time limits. The non competes is ruled by the state laws. Each and every state has their only rules to understanding and ruling of the non compete agreement. The case law does change all the time that is because new cases are decided on.

In the state of Alabama if someone had signed a non compete agreement, is that agreement enforceable and what is the penalty if violated the agreement?

In the state of Alabama the court as inspected the following features when deciding on whether a non compete agreement is valid and enforceable by:
1. The employer some sort of interest;
2. The agreement must have a limit that is related to the interest;
3. The limit must be reasonable for the time and the place; and
4. The agreement must not put an unnecessary burden on the employee.

If the above is presented by the employer to the employee, and then the agreement was signed then the agreement will be enforced. When violating this agreement it would normally give the legal right to the employer for the damages from the loss of profits because of the violation.

If someone had signed a non compete agreement in three different states and there is a non disclosure agreement, will the individual have the right to provide information in another state where the agreements are not set in place?

In this case if the individual has provided confidential information that is against the agreement in any state, that person can be sued by the other party. This is because the contract that were signed in the three states, that is normally where the individual can be sure, but it would possibly stop this individual from providing any information anywhere.

If someone had signed a two year non compete agreement, and the company is facing liquidation will that individual still be required to obey that agreement or can they work for someone else that has opened a new company with the same business?

If the liquidation of the company is successful, then the non compete agreement would end along with the employment. With that being said, this now gives the employee the right to work for whoever they wish without it becoming a lawsuit between the company and that person. The old company is the only one who could enforce the agreement, and since the company is going out of business, that means that the right to enforce any agreement is no longer valid.

A non compete agreement, is where an individual signs an agreement with another person. Often times many believe that if they do not obey this agreement, there are no consequences following this matter. This is where the person is not informed properly. There are consequences when violating a non compete agreement. These consequences can vary from state to state, to find out these penalties contact the Experts online.
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Recent Non Compete Agreement Questions

  • My question is under Massachusetts law do I have any recourse

    My question is under Massachusetts law do I have any recourse on former long time emploees conspiring behind our back and starting their own company and stealing over 50% of our customers practically over night. We know for a fact the definetly contacted some customers and solicited their company prior to resigning form us! A couple of our customers have come forward to admit this. Our Dad passed away on Nov 7th 2013 and on dec 16th we gave 4 of these guys a combined xmas bonus of over 100k They incorporated their company on Jan 6th and resigned from us on Feb 21st 2014. We have reviewed their files and customer visits obviously they knew they were leaving long before their departure date. After hearing from a few loyal customers we believe they were soliciting their new company as far back as Jan 1st 2014. We did not have not to compete and non disclosure contracts because these guys were not only long time employsees 2 over 20 years and 2 over ten years they were also longtime family and childhood friends!

    They have completely ravished our biz causing us to lose over 200k year to date. Not to mention us dealing with our Dads ex wife who is do her equitable share under new Hampshire law of 1/3 of his estate. we are on the verge of banktrupcy right now. Some of our customers chose to stay some have aloud both of us to bid on freight which I fine with us but more than a few and especially a handful of large customers have chosen them outwright because they have the realtionships with them and will not even call us back.. 2 of which from us having a forensic check done on their computers show they visited them in the last 20 days of employment on our payroll. Is their anything we can do to stop them or recover some of the damages? They are doing exactly what we do using the same exact carriers we use but for some reason some customers even long time customer that we have paid several claims to and assumed liability in situations that we could have not just to keep the customers happy refuse to even let us bid on the freight. we've even caught 2 customers constantly saying our bids our high but we've proven that its a lie since again we use the same carriers and we know we purposely underbid our costs a couple times to see if we would get the freight and did not. When confronted with this they insist our bids were high. Its unbelievable to me that a 40 year broker and freight forwarder that paid its employees over 35% higher than market standard and gave away 50% of the net profits to its employees at x-mas which in really good years meant over 400k being dolled out to them that they can just up and leave start their own deal and take all this away from us over night with no recourse? I just don't understand it! please advise! JB
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