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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 19222
Experience:  Employment/Labor Law Litigation
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My husband and I work for the same company in Indianapolis.

Customer Question

My husband and I work for the same company in Indianapolis. They have just been sold to a large Canadian company this week. We are being asked to sign an employment agreement but our concern is that my husband has a possible job opportunity in Chicago area but we won't know for a few weeks and are concerned with signing the agreement due to the non compete clause. The job opportunity is in the same business.
The clause is as stated:
Non-Competition and Non-Solicit:
a). Non-Competition: During the term of your employment, and for a period of twelve (12) months following termination of your employment , regardless of the reason for such termination, either individually or in partnership or jointly or in conjunction with any person or persons, firm, association, syndicate, company or corporation, as principle, agent, trustee, shareholder, employee or consultant, or in any manner whatsoever, whether directly or indirectly, carry on or be engaged in or concerned with or interested in, or advise, lend money to guarantee the debits or obligations of, or permit your name or any part thereof to be used or employed by or associated with any company or business which directly competes with the Business of the Company within: (a) the state of Indiana; (b) the Indiana counties of Adams, Allen... (thru) Whitley; and (c) the cities and counties for which you have been assigned responsibility with one year of your separation in the selling, soliciting, servicing or promoting any product or service which is produced or provided by the Company.
(b). Non-Solicitation of Employees and Other Representatives: During the term of my employment with the Company an for twelve (12) months thereafter, (a) you will not directly or indirectly encourage, solicit, induce, or attempt to encourage, solicit, or induce any employee, agent, contractor, or representative of Company to terminate his/her employment or contractual relationship with Company (or devote less than full efforts to Company's business), and (b) you will not directly or indirectly hire or attempt to hire: (i) for any competitive position with any competitor any person who is employee,agent, contractor or representative of Company at such time (or who has been an employee, agent, contractor or representative of Company at any time within the preceding 180 days) or (ii) for any position with any business any person who is employee, agent, contractor, or representative of Company at such time (or who has been an employee, agent, contractor, or representative of Company at any time within the preceding 180 days).
(c) Non-Solicitation of Customers: During the term of your employment with Company and for twelve (12) months thereafter, you will not, in a competitive capacity, on behalf of any person or entity other than Company, directly or indirectly:
(i) solicit, divert (or attempt to solicit or divert) or accept competitive business from any customer of Company with whom you had contact (either directly or indirectly) or over which you have had responsibility at any time in the one (1) year preceding your separation; and
(ii) solicit, divert, (or attempt to solicit or divert) or accept competitive business from any customer of Company about whom you have obtained Confidential Information.
Your obligations and covenants as set forth in this paragraph 8, and the Company's right to enforce them, shall survive the termination of this Agreement for any reason. The Company shall be entitled to file an action in a court of competent jurisdiction on account of such breach for monetary damages, injunctive relief and costs, in addition to another right of the Company hereunder and under law. You further agree and acknowledge that a preliminary injunction may issue enjoining you from further breach of this Agreement. In the event that such a court enters a final order (that is either non-appealable or that all right of appeal have expired) in any such action, the prevailing party shall be entitled to recover from the non-prevailing party, in addition to any order or judgement of damages, to the costs and reasonable attorney's fees incurred by the prevailing party in connection with such action.
Is it safe for my husband to sign this agreement if the job opportunity is in Chicago area so it won't be in the state of Indiana or any of their counties? He is a plant manager.
Will they have any legal grounds to come after him if he goes to work at a competitor?
I'm a production/purchasing manager at the company and I'll also be seeking a position with a competitor in the Chicago area since I'll be relocating with my husband. Is it safe for me to sign the agreement?
Thank you
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 company has narrowly fashioned this agreement to make it more enforceable, but in doing so they have appropriately made it so that it doesn't apply everywhere.

If your husband would not be working in Indiana or working in a county in which he had any clients that he worked with, then he can take a job with a competitor. This non-compete is very narrowly focused in those geographic areas, and for good reason. Courts don't like, and don't enforce, agreements which are too broad and essentially stop someone from being able to work anywhere.

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. Please rate me based on my service and not on your satisfaction with the law, which I am not in control of and I am just reporting to you. 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.