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Non-compete clauses

Catman100

Catman100

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Jan 3, 2003
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So let's continue this dumpster fire I am currently going through.

I am not a lawyer, so do any of you have experience getting released from a signed non-compete clause?

I understand the need for them and can totally understand a company not wanting you to leave them and take accounts, or poach their accounts at your new company.

My situation is a Covid caused layoff. Not a release caused by disciplinary issues or for performance, simply a re-organization that has sent dozens to unemployment. Have been given my last day of employment, and have been told my non compete is in effect for a year. I have been told that I can request to be released from the non-compete, but I have to tell them the name of the company I am seeking employment with, and the position. The new company is one of our biggest competitors, and the position is almost the same as my current position.

I expect I will get a big fawk off from my current company when they get that information. If and/or/when that happens, what would you guys do? Do you really think they will hold me to it? Do you think this is bully tactics to keep me from working for the competition? How will they hold me to it? Make me return already earned compensation or bonuses? Cease and desist letter to the new company? My company is a fortune 10 company with over 25k employees based out of a major city not in KY. If they took me to court over this, would it be in the other state and not in KY?

I can't imagine the company that released me in a mass layoff would then put obstacles in my way to provide for my family. Can't imagine a judge or jury siding with the big company over a guy just trying to feed his family, but this is 2020 and I am sure I will end up in Alcatraz over this.

Looking forward to some good input here, hopefully the knowledgeable lawyers who frequent the paddock have some solid advise for guy going through a tsunami/train wreck.
 
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buckethead1978

All-American
Oct 6, 2007
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I’m not a lawyer but you may be able to at least get out with a non-solicitation agreement

Has your prospective employer been told you have a non-compete? Are they willing to fight it?

the one thing you don’t want is to jump ship without them knowing, your old employer finding out and then enforcing the non-compete which results in the new employer dropping you.
 
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Get Buckets

All-Conference
Nov 4, 2007
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What does it say happens if you violate your non-compete? Does your potential new employer know you have one?
 
Catman100

Catman100

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Jan 3, 2003
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New company would like a non compete waiver in writing. Doesn't sound like they want to be held liable in any way.
Would love advice/direction from our HR, but they seem to be in bed with Legal.
 
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BigBlueFanGA

Heisman
Jun 14, 2005
26,435
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Catman100 said:
New company would like a non compete waiver in writing. Doesn't sound like they want to be held liable in any way.
Would love advice/direction from our HR, but they seem to be in bed with Legal.
Click to expand...
If you are in Kentucky, it isn't enforceable. In Georgia where I am, courts are extremely reluctant to deny a person the right to work. Being laid off, a decision they made, doesn't appear to help their cause.

https://www.fisherphillips.com/Non-Compete-and-Trade-Secrets/did-your-non-compete-just-get-laid-off
 
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buckethead1978

All-American
Oct 6, 2007
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The company I work for uses LouisvilleLawyers (Eddies-Domine) and we have used them to enforce a non-compete.

Best of luck to the OP, I think if he was laid off then he should be able to move on even if it is a competitor. But as an employer, I get the use of non-competes
 
HagginHall1999

HagginHall1999

Heisman
Oct 19, 2018
15,814
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I cannot imagine a company laying off someone and enforcing a non-compete. Best of luck to OP.

I once left a company that I unknowingly signed a non-compete for (buried in stock options). Found out only after I was offered a job at another company and told a trusted colleague at old job....he then informed me of non compete in our stock option. The two companies were not direct competitors but one business sold goods (job I was going to) thru multiple distributors (job I left) and could be considered both a partner and competitor if using a different distributor.

Long and short of it the old company let me take the new job and keep the stock options. I was impressed and enjoyed my short time there. I was just open and honest about it and they were great. Both companies were very large corporations and well known.
 
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DSmith21

Heisman
Mar 27, 2012
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In my experience as a business owner and working with our lawyers, non-competes are very enforceable so long as the terms are reasonable. For instance time length can't be more than a year or two and it can't be a nationwide restriction (has to be something like you can't work for a competitor within a 100 miles radius of your employer's location). Also it doesn't matter who ended the employment. I would suggest having a good attorney who specializes in labor law review your agreement. Maybe they can find an out. Otherwise you could be screwed. The company can sue you and threaten your new employer. Personally, I would not hire someone under a non-compete. Obviously, your new employer feels the same way.
 
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Hank Camacho

Heisman
May 7, 2002
27,501
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Contact an experienced business lawyer that is local to you. Some of the "advice" above is likely to be detrimental. Non-competes tend to be very fact dependent.

Even if money is tight, a good consultation with a good lawyer is going to be much, much better than internet research.
 
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anthonys735

anthonys735

Heisman
Jan 29, 2004
62,626
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Hankshaker said:
Contact an experienced business lawyer that is local to you. Some of the "advice" above is likely to be detrimental. Non-competes tend to be very fact dependent.

Even if money is tight, a good consultation with a good lawyer is going to be much, much better than internet research.
Click to expand...
There ya go. Correct advice.
 
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Chuckinden

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Jun 12, 2006
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My office went through this in the 80's. Judge ruled the non compete contract was enforceable and fine the defendants $10K for breaking it.
 
Deeeefense

Deeeefense

Heisman
Staff member
Aug 22, 2001
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JMO but if you were to go to work for a competitor unless they begin taking your former employees customers nothing would likely happen. It will cost them money to enforce it and if they aren't losing more than they are spending it's not worth it to them, but it's worth have a law pro review the agreement and advise.
 
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