Fight a no compete
I worked for a retail company for seven years. When I started in 1997 I signed a no compete clause. This contract was ammended in 2004 to cover more areas of the country. Later in 2004 I was terminated as an at will employee. Is a no compete binding after a termination?
Also, I have yet to find a new job outside this field. Does this hardship help fight a no compete?
Answers (1)
Non-Compete Issue
There are several issues that need to be explored. (I am assuming that this is a contract covered by Minnesota law -- non-competes are invalid in some states, but not Minnesota.)
1. Is the non-compete agreement a valid contract, i.e, was it properly presented and supported by consideration?
2. Is the amended version vaild -- was there consideration for the amendment?
3. Is the scope of the non-compete reasonable as to time, geography, and is it reasonably tailored to protect the legitimate interests of the employer?
4. Have you explored the possibility of a waiver with the former employer?
A non-compete agreement can be valid after termination if it expressly states that it will be. The actual hardship to the former employee is a minor factor that may be considered in determining whether the scope is reasonable, but if the agreement is otherwise reasonable, it will not invalidate the agreement.
You should have a lawyer review the agreement and the your individual facts before reaching any conclusions.
posted by Bill Egan | Dec 7, 2004 07:39 AM [EST]
There are several issues that need to be explored. (I am assuming that this is a contract covered by Minnesota law -- non-competes are invalid in some states, but not Minnesota.)
1. Is the non-compete agreement a valid contract, i.e, was it properly presented and supported by consideration?
2. Is the amended version vaild -- was there consideration for the amendment?
3. Is the scope of the non-compete reasonable as to time, geography, and is it reasonably tailored to protect the legitimate interests of the employer?
4. Have you explored the possibility of a waiver with the former employer?
A non-compete agreement can be valid after termination if it expressly states that it will be. The actual hardship to the former employee is a minor factor that may be considered in determining whether the scope is reasonable, but if the agreement is otherwise reasonable, it will not invalidate the agreement.
You should have a lawyer review the agreement and the your individual facts before reaching any conclusions.
posted by Bill Egan | Dec 7, 2004 07:39 AM [EST]
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