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Non Compete Clause ... something to worry about?

 
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atonecreative

posts: 17

Oct 24, 2008 11:06 PM ET    Quote  Report Abuse
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I have recently put in my notice for leaving my day job, I`m a website designer, I rarely come in contact with clients or any public relations. I gave them a month instead of 2 weeks so hopefully they will be appreciative of the gesture. In the employment agreement I had a 3 year 100 mile non compete clause, when I asked the manager she simply said you cant leave here and go work for another local firm and give them our client leads you got here.  
But as a put in my they reminded me of the clause in telling them I`m planning on starting my company. Where I live, I shouldn`t have a problem running into clients of theirs but I do a lot of the good work there so I know off the bat some clients are debating leaving with me. Do you all think I have something to worry about? Reading up, I don`t see these being enforced too much in Maryland (which is where I live). Any experiences  on the matter?
patentandtrademark

posts: 1332

Oct 25, 2008 10:00 AM ET    Quote  Report Abuse
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It is something to worry about if your leaving and the amount of competition is worth enough money.



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James Lindon, Ph.D. Patent Attorney
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metrofax

posts: 1

Oct 25, 2008 5:36 PM ET    Quote  Report Abuse
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These are always tough cases.

In the end a non-compete is only as strong as the company is willing to push it.

If you don`t cross the line, chase their clients, or otherwise be a jerk you`re likely OK.  Not necessarily - some companies will push to enforce non-competes just to prove a point HOWEVER you do have a right to earn a living and non-competes don`t overrule that right.

As with any such issue however, you should probably talk to a lawyer familiar with such laws in your state.



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Chris Haycox, Metro Hi Speed
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minimegeology

posts: 143

Oct 25, 2008 10:33 PM ET    Quote  Report Abuse
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Chris,
 
I agree with some earliers posts.  Consult with an attorney who deals with non-competes!  I have seen companies who don`t enforce non-competes and then another who threatened to sue a friend of mine for taking a local job after they fired him!
 
Good luck!
 
Tracy


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Tracy Barnhart, Owner
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caricc

posts: 25

Dec 30, 2008 7:56 PM ET    Quote  Report Abuse
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From what I have seen of non compete clauses is it`s only a worry as much as the company you are working for wants to enforce it. If the company is out of state or a foreign entity with in your state then you may be ok. But, if some of their clients decide to leave with  you and they are big money clients for this company you may be headed for some hot water.
 
Another way you can stay in good graces with your former employer is to remind the clients who want to jump ship to hold off on doing so. Wait a few months before they leave, or you can offer b2b contract services for these existing clients with your old employer.  It could save you some egg on your face.
Also some bad blood between you and them.
 
Above all follow the advice above and seek out an attorney whom is well verse in these matters.
 
Best of luck.
 
Carl.
caricc12/30/2008 9:07 PM
TheRetroMetro

posts: 4

Dec 31, 2008 10:36 AM ET    Quote  Report Abuse
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I dislike burning bridges. I agree with the information above, but if a company is simply NOT happy with the services rendered after your departure, outside of referring them to a company elsewhere because of the clause, what options do you have if they actively pursue you to work with them?

Would it make a difference if he privately contracted with the company as an independent, but somehow under a corporate umbrella? If the company decides to hire people for specifically, its own webdesign department, as contract or employee, does that still qualify as "noncompete" worthy?

WebJunky

posts: 549

Jan 11, 2009 11:51 AM ET    Quote  Report Abuse
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agree with carl, and also agree with our sunbassador. that said, the advice of hiring an attorney is very important.
 
i have 2 friends who ran into this. 1 opened up a small  brick and mortar business within 10 miles of the place he left. they did pursue him and he had to shut down.
 
my other friend was in corporate american and after leaving used a lot of the corporate information/material in his own venture. he makes a decent living of 250-300k per year, but nothing too big for the fortune 500 company to 1) notice and 2) pursue. the legal costs to them alone can run 200-300k. 
 
it varies on case by case basis - dot your i`s and cross the t`s and follow your instinct


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upvic

posts: 44

Dec 09, 2009 2:16 AM ET    Quote  Report Abuse
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Hi Chris,

I agree with the earlier post, it'll be much betterr to consult a lawyer first, just to be on the safe side.

I had a similar case like yours and what i did was talked to our HR and asked her to kindly define what exactly is their definition of "competition". I told her that I respect the non-compete clause but I think I do have the right to make a decent living based on what I can do.

Wishing enough peace of mind and good luck!

Uprinting.com

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