Non-compete prevents me from returning to old employer
This letter concerns a "non-to-compete" agreement I signed with my employer.
I have been at my current employer, 3 months. When I was hired, they asked that I sign the agreement and I did. Now I am being offered a job at my former employer, which will pay more, and I would like to leave. Sadly, the letter clearly states that in addition to a non-compete, I am not allowed to return to my former employer specifically. My current boss was once fired from there himself. Is that allowed?
Also, it states that I received $10.00 for signing it, which I never saw. Does that make it legal?
Answers (2)
Review your contract with a NY attorney
You will want to bring the noncompete agreement and contract to an attorney to review very carefully- they will also want to review your history with this company. there are many lawyers in the manhattan area who are good-- if one of them does not respond to this- write to me directly and I will make some suggestions.
the courts deal with variations on this regularly. A NELA lawyer will be able to give you good guidance;;
again, letme know if you need some names.
I would be glad to work onthis- but meeting with me would be a bit inconvenient- I am located in syracuse.
posted by Stefan Berg | Feb 19, 2001 2:59 PM [EST]
You will want to bring the noncompete agreement and contract to an attorney to review very carefully- they will also want to review your history with this company. there are many lawyers in the manhattan area who are good-- if one of them does not respond to this- write to me directly and I will make some suggestions.
the courts deal with variations on this regularly. A NELA lawyer will be able to give you good guidance;;
again, letme know if you need some names.
I would be glad to work onthis- but meeting with me would be a bit inconvenient- I am located in syracuse.
posted by Stefan Berg | Feb 19, 2001 2:59 PM [EST]
Lack of consideration may make it unenforceable
Employment agreements with non-competition clauses are nearly always written in a one-sided way favoring the employer. Sometimes, employers are trying to protect something which is very real, like trade secrets. But I once saw a non-compete agreement used by a company for all of its school bus drivers. The idea behind that agreement was obviously to lock in non-union employees on a long-term basis -- it was basically a contract of indentured servitude.
Generally, when an employee calls me to ask about a non-competition agreement, I tell them the same thing: You're buying a lawsuit.
Courts in New York State, as a general proposition, don't like non-competition clauses. So, if it gets as far as a lawsuit, you're likely to win, but it may cost you a lot of money to win.
With reference to you, I really cannot tell you what the likelihood is of the non-cempetition agreement being valid or invalid. I need to know about your employer's business and your job. In addition, I would need to see the wording of the agreement to determine things like duration, geographic scope, and product market coverage.
The $10 business might be nothing more that attorney trying to take care of a formality in contract law. The effort probably will not help your employer much with a case against you.
There is some recent caselaw in New York sustaining non-competition clauses in cases where employers made payments to employees, but, in those cases, the employers really paid the money and the amounts involved were about equal to the amount the employee would have received for the duration of the non-compete agreement. Your employer might have a lawyer who, I think incorrectly, believes he can stretch the holding of those cases.
You basically have to make a decision. The non-compete agreement basically locks in to this current employer. You can break out, but you might be taking a risk. I can't tell you how big of a risk because there is a lot about your situation that I don't know about.
If you have a major concern about your situation, I suggest that you invest in the cost of a thorough review by an experienced employment attorney.
posted by David M. Lira | Feb 19, 2001 2:52 PM [EST]
Employment agreements with non-competition clauses are nearly always written in a one-sided way favoring the employer. Sometimes, employers are trying to protect something which is very real, like trade secrets. But I once saw a non-compete agreement used by a company for all of its school bus drivers. The idea behind that agreement was obviously to lock in non-union employees on a long-term basis -- it was basically a contract of indentured servitude.
Generally, when an employee calls me to ask about a non-competition agreement, I tell them the same thing: You're buying a lawsuit.
Courts in New York State, as a general proposition, don't like non-competition clauses. So, if it gets as far as a lawsuit, you're likely to win, but it may cost you a lot of money to win.
With reference to you, I really cannot tell you what the likelihood is of the non-cempetition agreement being valid or invalid. I need to know about your employer's business and your job. In addition, I would need to see the wording of the agreement to determine things like duration, geographic scope, and product market coverage.
The $10 business might be nothing more that attorney trying to take care of a formality in contract law. The effort probably will not help your employer much with a case against you.
There is some recent caselaw in New York sustaining non-competition clauses in cases where employers made payments to employees, but, in those cases, the employers really paid the money and the amounts involved were about equal to the amount the employee would have received for the duration of the non-compete agreement. Your employer might have a lawyer who, I think incorrectly, believes he can stretch the holding of those cases.
You basically have to make a decision. The non-compete agreement basically locks in to this current employer. You can break out, but you might be taking a risk. I can't tell you how big of a risk because there is a lot about your situation that I don't know about.
If you have a major concern about your situation, I suggest that you invest in the cost of a thorough review by an experienced employment attorney.
posted by David M. Lira | Feb 19, 2001 2:52 PM [EST]
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