Is my non-compete covenant valid?

I am a journalist with a job in Connecticut, but I would like to take a job at a competitor in New York. The thing is, I pretty naively signed a non-compete covenant when beginning my job.

There are several issues here: whether it really is valid because of the manner it was provided to me and the wording of it, and also whether the consequences are even worth worrying about.

Firstly, I'm not sure if it really applies to me in a journalism role, because it says I can not "call upon any customer of [my company] for the purpose of soliciting or providing to such customer any products or services that are the same or similar to those provided to customers by [my company]." It seems as if I can't start a new publication or sell ads at a competing publication, but perhaps I am just not interpreting this broadly enough.

The consequence would be the "remittance of all payments" otherwise due me. I am not concerned with losing a last paycheck, but I'm curious if they can take back previous compensation, such as a completely vested retirement account. (I know they wouldn't sue me as a low-level employee who probably makes less than their court fees would be anyway.)

Furthermore, you should know that the non-compete covenant is slipped into a very old employee handbook that needs to be updated. I wouldn't be surprised if my boss doesn't know I signed it. I was asked to sign it by the HR person who enrolled me in the company. I didn't even see the agreement until a few days into my employment and no one ever explained it to me. I actually moved states to take the job, and it was never told to me about the agreement. Therefore, I wasn't given any time to consider and entered into it pretty unknowingly.

If you have general information, I would be very interested, especially as it could help someone else. However, I would also be interested in a consultation to discuss my matter in more detail if you think that would be more appropriate.

Thanks for your time.

1 answer  |  asked Dec 12, 2009 12:22 PM [EST]  |  applies to New York

Answers (1)

Neil Klingshirn
I just added a non-compete article that addresses New York non-competition law, located here:

http://www.myemploymentlawyer.com/wiki/New-York-Non-competition-Law.htm.

Also, if your non-compete was in your handbook, look for a disclaimer in the handbook that states it "is not a contract." If the handbook has a disclaimer, you may be able to argue that the handbook non-compete provision is not an agreement that is binding on you.

posted by Neil Klingshirn  |  Dec 13, 2009 11:38 AM [EST]

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