Is the non-compete agreement still valid after the sale of the company?
As part of being employed by the company I currently work for I had to sign a non-compete agreement on my first day, which included a miles restriction and a 1 year term. If I did not sign the agreement I would not be able to work there. My position is Sales Mgr. The company is being sold to a "private investment firm". Will I be bound by the original agreement with the new owners?
2 answers | asked May 23, 2012 4:02 PM [EST] | applies to Pennsylvania
Answers (2)
To answer your specific question, I must review the exact terms of the non-compete agreement, the circumstances of your signing the agreement and the nature of proposed activity. Is there any possibility of negotiating with the new owner? Feel free to contact me to discuss options.
Doris Dabrowski
1525 Locust St., 14th floor
Philadelphia Pa. 19102
215-790-1115
http://www.dabrowski-law.com
dabrowskid@verizon.net
posted by Doris Dabrowski | May 24, 2012 1:29 PM [EST]
Doris Dabrowski
1525 Locust St., 14th floor
Philadelphia Pa. 19102
215-790-1115
http://www.dabrowski-law.com
dabrowskid@verizon.net
posted by Doris Dabrowski | May 24, 2012 1:29 PM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania, New Jersey or Federal law apply, unless otherwise specified.
That being said, if the noncompete is valid, AND if the company is being sold and not just the assets, then yes, you would be bound after the sale. However, if the assets are being sold and the noncompete does not have an assignment clause, it won't be enforceable by the new operators of the business.
Furthermore, noncompetition agreements are not always valid; there are many technical requirements that they must meet; yours may not be valid. You should have this reviewed by an attorney.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or telephone number.
/Christopher E. Ezold/
The Ezold Law Firm, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com
posted by Christopher Ezold | May 23, 2012 4:32 PM [EST]
That being said, if the noncompete is valid, AND if the company is being sold and not just the assets, then yes, you would be bound after the sale. However, if the assets are being sold and the noncompete does not have an assignment clause, it won't be enforceable by the new operators of the business.
Furthermore, noncompetition agreements are not always valid; there are many technical requirements that they must meet; yours may not be valid. You should have this reviewed by an attorney.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or telephone number.
/Christopher E. Ezold/
The Ezold Law Firm, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com
posted by Christopher Ezold | May 23, 2012 4:32 PM [EST]
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