Do non-competes hold a dollar value in California?
Of seven children I am the only child to work at my father's company. I have worked as an at-will employee for 13 years. I was in Sales for 4 yrs and was GM/CFO from 1995 'til fired. He died several months ago and the family trust that holds the majority of the company's stock fired me. They want to buy my shares in the company and want me to agree to a non-compete contract. They want me to sign a three year contract without any value attached to it. I was very successful in the industry and was nationally recognized by my peers and associates. Is there typically a dollar amount attached to a non-compete contract?
2 answers | asked Oct 6, 2003 11:46 AM [EST] | applies to California
Answers (2)
I agree with the remarks made by Ms. Koehn. The value of the noncompete requires consideration of many factors, including, importantly, how much income you will lose by not working in the industry.
posted by kerry gough | Oct 6, 2003 1:20 PM [EST]
a buyout is one of the few areas where a noncompete agreement is allowed in california. clearly the buyout value of your shares should increase based on this requirement. alternatively you can keep your shares and refuse the noncompete.
your statement that you're not willing to pay for an attorney consultation is impractical and shortsighted. in this situation, attorneys experienced in such negotiations and advice always charge hourly or set fees for advising as to a buyout agreement and its terms. as i am not in your geographic area, i feel i can say this without being accused of self-interest. you can find a san francisco attorney experienced in this area of law at the california employment lawyers association's website, www.celaweb.org.
janet m. koehn
ventura ca
posted by Janet M. Koehn | Oct 6, 2003 12:05 PM [EST]
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