Employee Intellectual Property/Confidentiality/Non-Solicitation Agreement

I worked for company "A" for almost seven years in sales when it was sold at the end 2006. When job offers were made by the buyout company we had to sign an "Employee Intellectual Property/Confidentiality/Non-Solicitation Agreement". In the second week of 2008 they told us they were closing down our facility due to logistic issues. Now I know is the wrong time to be reading what I signed. But after reading it I don't think I will be able to find another job in this industry. Since we are being let go due to them closing our facility does that void our Contract? The company is a Mississippi LLC and the closing facility is located in Arizona.

1 answer  |  asked Jan 19, 2008 12:35 AM [EST]  |  applies to Arizona

Answers (1)

Francis Fanning
Non-competes have to be read carefully

Your assumption that you won't be able to get another job in the industry leads me to conclude that either you need to read the agreement again or you need to have a lawyer read it. The title of the agreement suggests that it is not a non-compete agreement, but the text of the agreement is what counts. An "intellectual property" agreement typically says "Don't steal our patents and copyrights, even if you created them while working for us." That shouldn't keep you out of a job. A "confidentiality" agreement typically says "don't reveal our secrets," an obligation that is already in place by virtue of the Uniform Trade Secrets Act, which prohibits the dissemination of trade secrets. That shouldn't keep you out of work. A "non-solicitation" agreement typically says "Don't steal our customers or our employees." Again, that shouldn't keep you from getting a job.
If the agreement contains a non-compete provision, i.e. "You may not go to work for a competitor of ours for a year after you leave," that could keep you out of a job in the industry, but that kind of agreement is only enforceable if it has a limited time and geographic scope.
If you are having trouble understanding what the agreement means and whether it is enforceable, have an attorney review it.

posted by Francis Fanning  |  Jan 21, 2008 4:01 PM [EST]

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