A company`s investment in its employees, customer relationships and confidential information is too valuable to be exposed to unfair competition. MacElree Harvey`s lawyers can help you review your non-compete obligation and develop agreements tailored to your individual business needs. To schedule a consultation, contact Harry J. DiDonato at 610.840.0237, Robert A. Burke at 610.840.0211 or a member of our business law team. If you plan to use non-compete clauses in employment contracts outside of sales business contexts, ask yourself the following questions: As an attorney who frequently handles contractual disputes involving non-compete obligations in Texas, one of the questions I ask more than any other (by employers and employees) is: «Is my Texas Non-Competition Code enforceable?» To navigate the complex world of non-compete obligations, we define below exactly what a non-compete obligation is, describe what it entails, give examples of what is (generally) enforceable and what is not, and link to a sample of a standard non-compete obligation. The best thing to do would be not to have a non-competition clause at all. Otherwise, you should try to limit it as much as possible in terms of geographical scope and duration. Narrowly limit it to the area where the employer is really concerned about you working – not to the entire industry or field of work.
For example, you could request that the restriction on clothing retail space apply if you work in a clothing store, as opposed to retail in general, which would cover a very wide range of possible jobs that really have nothing to do with each other. The aim is to limit the agreement to what is necessary to protect the employer. You should also consider requiring severance pay in the event of involuntary termination. [JUMP TO: Click here for answers to hiring questions from me to help you with your Texas no-go plan, and click here to read the real customer reviews.] One. This is a strange area of law. It`s often not as simple as «You signed it, you have to stick to it.» The individual facts of the individual case must be analysed. In addition, given my more than 25 years of experience, I have a good idea of the situations that will end in legal litigation and those that will not. «Understanding the extent of an employer`s current non-compete obligations will allow the employer to make the necessary adjustments if and when the FTC takes action,» Elkins advised. Non-compete obligations are currently a hot topic due to the growth of digital communication, documentation and increased competition between companies.
The clauses are particularly prevalent in areas such as engineering and finance, according to a new working paper by economists at the University of Illinois and the University of Michigan, but also appear in less obvious areas such as lawn care and hairdressing. 24. I am negotiating a non-compete obligation. Are there certain things I should ask? What usually happens is that the employer sends a letter to the employee and the new employer, threatens to sue both, and the employee is fired from his new job, even if he has informed the new employer of the non-compete obligation. This is because Florida is a state at will, unless you have a contract with the new employer that says you can only be fired for cause and that the non-compete obligation is known to the employer and is not a cause. This means that any employer can fire any employee for any reason or no reason. 15. I left my old business to take a job with a new business. The new company only told me that I had a non-competition clause when I had already left the old job. Does that mean I`m sticking to it? And an employer that tries to enforce a non-compete clause and fails ends up paying the dominant employee`s legal fees and expenses, and sometimes pays the employee monetary damages for unauthorized interference in an employment relationship if they cost the employee a job.
In his concurring opinion in Marsh USA, Judge Willett warned judges not to be «divine when competition becomes unfair competition and when a restriction becomes an unreasonable or unnecessarily restrictive restriction.» Texas law, he said, «does not allow protectionism» and that non-compete obligations cannot protect against «the bruising of ordinary competition.» 16. All of us here at work have non-compete obligations, but the company has never enforced them when someone leaves. Does that mean I can just ignore it? Under Massachusetts law, a non-compete clause against a low-wage employee is invalid. The law states that employees who are classified as «not exempt» under the RSA are not required to sign a non-competition clause. Courts often take into account these factors: geographical scope, duration, nature of limited tasks and consideration – one in relation to the other. .
