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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 19179
Experience:  Employment/Labor Law Litigation
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I have been -off from my employer of 14 years. I was red as

Customer Question

I have been laid-off from my employer of 14 years. I was hired as a regional sales manager for a company that sold accounting software. The sales model was to sell directly to companies. Five years ago they formed a new company and I was promoted to President it sells financial reporting software. The second company entered into an agreement with a software publisher to co-own the source code in exchange for sales & marketing exclusivity. This product is primarily sold through value added resellers. I signed an initial non-compete with the first company 14 years ago and did not sign a new one for the new company. This document states that I can not solicit, divert, take away business, etc.. for one year. They have provided me a severance package and have had me sign a settlement agreement and general release. Does this non-compete apply to the new company? I am looking to start a new company and want to develop an Advanced Budgeting Module and a dash board. The company had a desire to create the modules themselves but never did. Can I start this company and develop these modules? Will the non-compete be in affect?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Allen M., Esq. replied 1 year 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.

The non-compete would apply to the new company if the language of the non-compete was written to apply to "successors in interest, assigns and co-entities." That's not the exactly language it must have, but just a sample of the sort of language that would have to be present in order for the document to have application beyond just the original signing company.

Now days, you are certain to find that language, but a contract from 14 years ago may not have been as well written and may not contain language anticipating the possibility of a different company needing to enforce the agreement.

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 1 year ago.

Hello, I wanted to check in and make sure that there was not any additional information that you required after the response I previously provided to you. 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.