MililaniBuckeye;1470366; said:
I was in Indiana at the time.....a Right to be Unemployed State.....
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I was in Indiana at the time.....a Right to be Unemployed State.....
PlanetFrnd
Head Coach
I didn't realize you were on severance - that certainly changes things. Should have taken the lump sum payment, if there was an option to do so.
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[quote='BusNative;147048;1]I didn't realize you were on severance - that certainly changes things. Should have taken the lump sum payment, if there was an option to do so.[/quote]
Not severance agreement was a one time lump sum pay out that included two weeks of pay and all earned vacation. It was dependent on signing an agreement basically holding the company harmless....yada...yada...yada.....
So, when you have a family to support and you need monies to do that, most will sign. As I stated earlier, with my new firm I negotiated an out from the Non-Compete.
Not severance agreement was a one time lump sum pay out that included two weeks of pay and all earned vacation. It was dependent on signing an agreement basically holding the company harmless....yada...yada...yada.....
So, when you have a family to support and you need monies to do that, most will sign. As I stated earlier, with my new firm I negotiated an out from the Non-Compete.
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Jake
Once a Buckeye, always a Buckeye
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buckeyebri;1470338; said:
Having been bound by them in the past, or at least they attempted to bind me, I can tell you one of the things necessary is consideration (goes for any contract).
Your employment contract alone is NOT sufficient consideration to bind you after you leave said employment. They have to have offered you something beyond employment to bind you after it ends - a promise for a promise.
You need to ascertain whether it is legally binding. If your potential future employers aren't doing that due diligence - and simply drawing conclusions based on the mere existence of the clause - then you may not have wanted to work for them, anyway. It's HR 101 to make sure such promises are binding.
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Gatorubet
Loathing All Things Georgia
Like all things, the law is different from state to state. So you first have to figure out which state has which law, because you might have an enforcible non-compete in one state that prohibits your taking a job, but be able to work for that same new employer in another state.
Most non-competes have some kind of choice of forum and venue clause in it saying what law is to be used to interpret the contract. In my state, the law was changed a few years back to invalidate any such clause - unless it was agreed to after the dust up arose. IOW, a company in Iowa could not force you in Louisiana to litigate the non-compete in Iowa, or using Iowa law favorable to the company...but that is not the law everywhere. They are not favored in my state, and the terms are strictly construed against finding it valid.
And in my state they cannot last more than 2 years. Even if it says for 10 years, it is only good for 2. And the contract has to identify with specificity the geographic area where it applies by city or Parish. In addition, if the employer goes out of business, or for only so long as the employer carries on a similar business in the area designated under the non-compete, then you are no longer bound. IOW, if you are a widget salesman who signed a valid non-compete, then if the employer goes out of the widget business, you are free from the effects of the non-compete contract.
In my state they can not only enjoin you from working, they can sue you for lost profit if you disregard the non-compete and its costs them money. Some states do not have recourse versus the employee for breaking it, they can just make you stop working. Others say you can be sued for money individually.
The thing is, it has to be a reasonable restriction. Not, "cannot work for any other employer so long as the sky is blue", which would be void. Some states require separate and "new" consideration (like Jake said). Some don't require any new money at all. Each state has some duration rule. They cannot stop you from working in your field forever. The geographic limit of the restriction varies state to state. Also, some states will let the courts modify the non-compete to something more reasonable and then enforce it, while in other states if it has a problem with part of it, it is all void.
I hate to say it, but you do not need to make a decision based upon what we do here - or some other state than where you live. But if you signed one, you might be able to get out of it by moving to a state that has favorable laws on your issue, whatever it is. See a lawyer.
Most non-competes have some kind of choice of forum and venue clause in it saying what law is to be used to interpret the contract. In my state, the law was changed a few years back to invalidate any such clause - unless it was agreed to after the dust up arose. IOW, a company in Iowa could not force you in Louisiana to litigate the non-compete in Iowa, or using Iowa law favorable to the company...but that is not the law everywhere. They are not favored in my state, and the terms are strictly construed against finding it valid.
And in my state they cannot last more than 2 years. Even if it says for 10 years, it is only good for 2. And the contract has to identify with specificity the geographic area where it applies by city or Parish. In addition, if the employer goes out of business, or for only so long as the employer carries on a similar business in the area designated under the non-compete, then you are no longer bound. IOW, if you are a widget salesman who signed a valid non-compete, then if the employer goes out of the widget business, you are free from the effects of the non-compete contract.
In my state they can not only enjoin you from working, they can sue you for lost profit if you disregard the non-compete and its costs them money. Some states do not have recourse versus the employee for breaking it, they can just make you stop working. Others say you can be sued for money individually.
The thing is, it has to be a reasonable restriction. Not, "cannot work for any other employer so long as the sky is blue", which would be void. Some states require separate and "new" consideration (like Jake said). Some don't require any new money at all. Each state has some duration rule. They cannot stop you from working in your field forever. The geographic limit of the restriction varies state to state. Also, some states will let the courts modify the non-compete to something more reasonable and then enforce it, while in other states if it has a problem with part of it, it is all void.
I hate to say it, but you do not need to make a decision based upon what we do here - or some other state than where you live. But if you signed one, you might be able to get out of it by moving to a state that has favorable laws on your issue, whatever it is. See a lawyer.
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TexasBuck
Heisman
I had a situation over a non-compete a few years ago. I showed the non-compete clause to my prospective employer. Their legal department looked at it and told me the wording wouldn't hold up in court. If the former employer tried to enforce it, the new company would back me. It also didn't hurt that I was in Texas which is an "employment at will" state.
So my situation pretty much proves that there's some pretty sound advice in this forum. Wording and location are key. I thought I'd chime in to share the idea about showing the agreement to the prospective employer. That sure worked for me. Being upfront, open and honest about it seemed to really help my situation.
So my situation pretty much proves that there's some pretty sound advice in this forum. Wording and location are key. I thought I'd chime in to share the idea about showing the agreement to the prospective employer. That sure worked for me. Being upfront, open and honest about it seemed to really help my situation.
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I am under one as a DOD Contractor. I can't go to another company seen as a competitor for something like 6 months to a year after employment termination or something like that.
The fun part is there are caveats that have caveats within that agreement. Something like if the company A loses the contract to company B I can either stay with company A OR I can accept immediate employment on the same project with company B as long as Company A is not involved in that project anymore.
Fun times.
The fun part is there are caveats that have caveats within that agreement. Something like if the company A loses the contract to company B I can either stay with company A OR I can accept immediate employment on the same project with company B as long as Company A is not involved in that project anymore.
Fun times.
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