Let's Talk No Compete Agreements

[bcoop]

aaaaaaaaand I just got hit with a letter from my previous employer's lawyer stating I'm in violation of my non-compete and "my employment with [current employer] is a violation of the Agreement and [former employer] is prepared to take any and all steps necessary to protect its legal rights."

We'll see what happens, but all I can say is I never should've worked for a fucking NY based company. Buncha cocksuckers....

They also sent a very similar letter to my current CEO stating [I]" am prohibited from being employed by [current employer] by his contractual obligations to [former employer]."

To my understanding, there are conditions that must be included in the no compete to hold up in court. If they aren't met, they can pound sand. Someone can correct me if I'm wrong, but I heard the following.

1- You must have been compensated in some form or fashion for signing the agreement. Hiring bonuses, etc.
2- There has to be a geographical limitation.


There was one more that I can't recall right now.

[Big A]

Will do.

Not a single bit cent, or even an opportunity.

Such a waste of resources, even to send the two letters that they did. I don't know why they would even bother, 'cept out of plain malice. Hopefully they realize that there is nothing to be gained or recuperated by pursuing it any further, or that you didn't royally piss anyone off when you left.

[Roscoe]

To my understanding, there are conditions that must be included in the no compete to hold up in court. If they aren't met, they can pound sand. Someone can correct me if I'm wrong, but I heard the following.

1- You must have been compensated in some form or fashion for signing the agreement. Hiring bonuses, etc.
2- There has to be a geographical limitation.


There was one more that I can't recall right now.

Here's an excerpt of the letter, including the non-compete clause - which is a bit unrealistic. It (in essence) states that I cannot work with any remotely related company in all of North America.... I basically can't use my skills to support my family unless I'm working for my previous employer.

Such a waste of resources, even to send the two letters that they did. I don't know why they would even bother, 'cept out of plain malice. Hopefully they realize that there is nothing to be gained or recuperated by pursuing it any further, or that you didn't royally piss anyone off when you left.

Accuracy above... I sold more for that company in a year and a half than probably any other rep they've ever had. They are suffering right now and really not selling anything and I've gone to the company that has been really winning most any deal we're in.

I have a laundry list of why I should've left (they weren't paying my commissions, changing comp plans unjustly, unhealthy working environment (ie - "abusive" management), deceptive practices, etc... The best part is one of my previous colleagues left and went to the largest competitor in our market and was not pursued at all. His "12 months" was up last December. I called him today to verify and he never heard a word from him. Wonder if this could possibly be grounds for discrimination/harassment lawsuit?

[talisman]

lmao, that will never hold up in court. Might as well be a slavery contract.

[bcoop]

Call an attorney, man. ASAP. Sucks that you're dealing with the equivalent of a woman scorned.

[LANTIRN]

My company has one but it is only for specific proprietary equipment that no one else has. They basically only care if anyone gives out company secrets on that equipment, but they don't seem as concerned about anything else. Lots of guys have gone to competitors lately and it has not been an issue at all.

I can't imagine one holding up in court that basically said you can't use any of your skills for any other company.

[greenbullitt]

i dont think id sign it...btw, i texted you

[slow99]

Well, my company didn't come after me when I left. I signed a non compete to receive my 2012 bonus - it basically said a competitor was "any firm involved in the financial services industry". First of all, any of this shit was illegal in CA, so I wasn't worried but I did consult some attorneys.

I know the General Counsel for Blackrock very well (the attorneys who write these internally for their own employees). Blackrock has a huge presence in NY, obviously. They told me the general rule is that once $$ hits the employees account, it's theirs. It is extremely difficult and costly for the firm to pursue it.

The broad language in my non compete meant (in their opinion) that it wouldn't be enforceable anyways ... "any financial services firm". At the end of the day: 1) These didn't hold ANY water in CA; and 2) even in another state, these are VERY difficult and VERY costly to enforce.

I'd tell them to come and get it, best of luck, here's my attorney's contact info.

[Roscoe]

Call an attorney, man. ASAP. Sucks that you're dealing with the equivalent of a woman scorned.

When I was hired with my current company, I fully disclosed the non-compete above. They sent to our HR and Employment Counsel that we have on staff, and they both said "that's fine, but in the event that it becomes a problem, please know that we cannot become involved".

Duly noted, on to the job. Here I am 6mo later and am one week away from closing the largest deal in company history (ie 4x years worth of quota). I called my boss this afternoon the moment I got it, and informed him that a copy was being sent to our CEO.

He called our CEO moments later, and called me back within 5 minutes. He stated, "Know that your job here is not in any way at risk and we will review with our VP of HR and our Employment Attorney and will let you know what our course of action will be".

While they can't counsel me on what I can do in return, I think I may have a bit of assistance on the inside. I swear I'm highly contemplating a lawsuit. I've checked with a few others since and know of 4 employees that have gone to competitors...

Funny how I'm the only one they are pursuing.

[Roscoe]

Well, my company didn't come after me when I left. I signed a non compete to receive my 2012 bonus - it basically said a competitor was "any firm involved in the financial services industry". First of all, any of this shit was illegal in CA, so I wasn't worried but I did consult some attorneys.

I know the General Counsel for Blackrock very well (the attorneys who write these internally for their own employees). Blackrock has a huge presence in NY, obviously. They told me the general rule is that once $$ hits the employees account, it's theirs. It is extremely difficult and costly for the firm to pursue it.

The broad language in my non compete meant (in their opinion) that it wouldn't be enforceable anyways ... "any financial services firm". At the end of the day: 1) These didn't hold ANY water in CA; and 2) even in another state, these are VERY difficult and VERY costly to enforce.

I'd tell them to come and get it, best of luck, here's my attorney's contact info.

Very enjoyable post to read...

#richpeopleproblems

The downside is they can be very costly to defend as well....

[slow99]

Yeah, the people here at my new gig said they deal with this stuff all the time. They said they'd incur any legal fees to fight it, if necessary, but doubted they would - said they're largely a scare tactic.

[slow99]

Very enjoyable post to read...

#richpeopleproblems

The downside is they can be very costly to defend as well....

I had a pretty decent bonus as far as I am concerned (for my level) and all these attorneys said there's no way they'd ever go after it - too costly to recoup those peanuts, not worth the effort.

I'd basically have to be at my bosses' level ($1MM + bonuses) before these even become worth their time to consider.

[Roscoe]

I had a pretty decent bonus as far as I am concerned (for my level) and all these attorneys said there's no way they'd ever go after it - too costly to recoup those peanuts, not worth the effort.

I'd basically have to be at my bosses' level ($1MM + bonuses) before these even become worth their time to consider.

No, I completely hear you.... although I'm far from your bosses level.... and probably your's as well!

The scary thing is the CEO and VP of Sales at my former employer have no right being in the roles that they are in and would throw good money after bad.

Either way, I think I'm going to build a solid case and sue them if I hear one more word from them.

[racrguy]

I'd basically have to be at my bosses' level ($1MM + bonuses) before these even become worth their time to consider.

Still pales in comparison to chooo$$$$$$$$$$chooo$$$$$$$$$$$

[mustangguy289]

How can any company tell you that if THEY fire you, you cannot use your skills to provide for yourself? Companies should be fined for even typing that on a paper.

I can understand the NC a little more to keep employees from quitting one job to go to a competitor for more money. I need to get my paperwork back out but if I remember right, I only signed papers about intellectual property.Nothing in there told me I wasn't allowed to work for a competitor. They have told me that if a person leaves for a competitor there is no way they will ever re-hire that person. I have been told they use that as a scare tactic when the shop guys try to leave to make an extra 50 cents an hour somewhere else.