wanting to stay within my non-compete
I currently work for a company which I am under a non-compete. It states I can not work for any competors nor can I solict any business from the company for 2 years or a 50 mile radius starting on the day of termination. I am wanting to start my own company doing the exact same work but moving out of the 50 mile radius 150 miles to be exact. Can my current employer say that i am still in breech with the non-compete if I start the company 150 miles away while still being employed by them
1 answer | asked Oct 14, 2004 1:03 PM [EST] | applies to Ohio
Answers (1)
Do not compete against your employer while you are still employed.
Your strategy of moving outside of the 50 mile radius will avoid a claim for a breach of the non-compete. However, your employer also has the right to prevent, or recover damages for, your competition with him during your employment. This claim, which is sometimes called the "faithless servant doctrine," basically says that you have a duty of loyalty to your employer not to take its opportunities away. If you can do the competing work at the same time that you work for your employer, your employer can claim you should be doing for it.
Therefore, do not begin the competing activity until after you leave your current employment, unless you do so with your current employer's knowledge and permission. At that point, stay outside of the 50 miles and you should be free to go into business.
Good luck and stay out of trouble.
Neil Klingshirn
posted by Neil Klingshirn | Oct 20, 2004 5:36 PM [EST]
Your strategy of moving outside of the 50 mile radius will avoid a claim for a breach of the non-compete. However, your employer also has the right to prevent, or recover damages for, your competition with him during your employment. This claim, which is sometimes called the "faithless servant doctrine," basically says that you have a duty of loyalty to your employer not to take its opportunities away. If you can do the competing work at the same time that you work for your employer, your employer can claim you should be doing for it.
Therefore, do not begin the competing activity until after you leave your current employment, unless you do so with your current employer's knowledge and permission. At that point, stay outside of the 50 miles and you should be free to go into business.
Good luck and stay out of trouble.
Neil Klingshirn
posted by Neil Klingshirn | Oct 20, 2004 5:36 PM [EST]
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