Non Compete in Mass
I was recently terminated from my position w/ my company. I was forced to sign a non compete as part of my employment agreement. I have included the 2 most relevant sections of my Key Employment Agreement. The non compete states
"Section 3.2
I agree that during the period of my employment by the Company, and for a period of on year thereafter:
a. I will not, w/ out the Company's prior express written consent, engage in, have an interest in, be employed by or be in any way, directly or indirectly connected w/ (other than by virtue of ownership of less than 2% of the outstanding capital stock of any class of publicly traded company_ an business that is in competition w/ the Company, nor will I engage in any research, development or other activity relating to any products or services similar to those under research, or being developed, produced, provided, or marketed by the Company. However, the foregoing prohibition shall not be deemed to prohibit me, after termination of my employment w/ the Company, from accepting employment w/ corporations or business entities in the pharmaceutical, biotechnology, or medical device industries or medical institutions such as hospitals, provided, however, that such corporations or business entity is not engaged in the business of providing services similar to those provided by the Company or is not hiring the Employee in order to being engaging in the business of providing services similar those to provided by the Company.
Section 4.7
My obligations under the Agreement shall survive the termination of my employment regardless of the manner of such termination, shall be binding upon my heirs, executors and administrators and shall inure to the benefit of the Company's successors and assigns."
As the company decided to terminate my employment, I am wondering how enforceable is this. I have 2 interviews set up for next we that could be considered 'competitors'. and wanted to know my options. As I did not leave by my choice, and the company decided to terminate my employment, can they really prevent me from going to another company and earn a living? Would this be something they can pursue against me, and would they(?)
Again, I am just looking for what my options are. Any information that you can provide is appreciated. Thanks.
Answers (1)
1. Yes, these agreements are generally enforceable in Massachusetts. But our courts examine them to see if they are fair in all respects, and will often modify or narrow them if they are not.
2. They have to be appropriate and narrow in terms of length of time, geography, and subject matter. A one year restriction is normal.
3. They cannot be overly broad or vague in subject matter -- that is, restricting you from using the kinds of skills and information you have or the industry you work in. Yours is pretty vague, since the definition of "similar" is broad and the kinds of products is undefined. If contested, a court would probably re-write this to refer to very specific products yuo were involved in that your new employer is definitely competing against.
4. Employers do not usually attempt to enforce these unless you provoke them or they feel very threatened by your new employer's specific line of business.
For more info, see FAQ:
http://www.myemploymentlawyer.com/non-compete-covenant-FAQs.htm
posted by Kevin McGann | May 14, 2010 07:21 AM [EST]
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