Non Compete experience

Anybody got any experience getting out of a non compete? Do they hold up? Don’t want to air all my business but I’m a potential battle with a former employer.

I had a non compete with a captive company selling insurance. That company was purchased by a larger company. Many people left during that acquisition. They sent some letters. My attorney sent a nasty gram. It never went anywhere.

I had tow friends who worked for Chem Serch. Who had one.. They went into business for themselves and somehow got out of the old contract.

I was terminated for no reason, no reprimands, write ups or warnings. Top producer for 3 straight years. I went to work for a competitor now they are sending me letters.

Just don't utilize any of the previous company resources or proprietary information. You have a right to work and a right to your experience.

You taking old companies customers over to new company? If so it just becomes a matter of economics for them. Is it cheaper to leave you alone? Or drag you into court?

My dad got hit with a non-compete and the old company came after him aggressively. One or two major customers had significant impact for them. Ended up he essentially could not work in his field of choice for 5 years.

Yes, they are real
Yes, Your Company will get cease and desist letters from your former employee attorneys
Yes, they will end up in court with subpoenas for your phone, laptop, your home files.

Go call one other customers till your non compete runs out.

Now what we did was send another salesperson in the account, if they got some business, the accounts were turned back over to you if needed.

I know of a certain food products distributor that had something similar happen. Seems like I heard their non-compete wasn't well written and it was only valid for about half the time they claimed - plus all they had the teeth to stop was those ex-employees from targeting prior customers that were within their territories with the former company. Just what I "heard"

They are real, and they can be beat, but usually they are boughten out by current employer

A lot of it is the language of the Non Compete.

Now if you fall into a protected class you have a little more standing

Call a lawyer that specializes in employment law

Pretty sure Texas has some Case history in which time Limits and mileage were too excessive. If you have an undefined non-compete regarding either, you can likely get it thrown out in court. Likewise, anything greater than 24 mo or 5-10 miles and you can get it thrown out in court.

Legal advice on a hunting forum is generally worth what you paid.

It’s a general blanket noncompete with no defined geographic area, mileage, territory, etc...

Sounds like its worth a lawyer looking at. Usually blanket language doesn't hold up well vs. very specific and clear cut language.

They are real, I hired an attorney to tell my previous employer to beat it. That is the very short version.

If you do get to the point where a judge gets involved, you can expect a Temporary Restraining Order (TRO) to stop you from working while the case goes through the system.

If you would like, PM me and I can share more with you in more detail and I can share contact info for the attorney I used. She specializes in employment disputes including non competes.

And that will likely get dumped legally pretty easily.
Get the lawyer, or have your new company fight it. Shouldn’t be a problem

Right to work state. Won’t make it far.

Did you read and sign the non-compete? The signing part is what really matters unless you had to sign it under duress.

Yes I read it and signed it at the time. I had to I had no choice or walk. I would still be there if they did not let me go therefore not in a situation where I became a competitor. I had to work in the industry that I have experience with.

Especially with being let go

The sooner you get a good lawyer, the quicker it will get resolved.

If they fired you, then I don’t see how they have a leg to stand on. How were you forced to sign something? Severance check?

Yes. Guy I worked with Left US Foods, went to Ben E. Keith. He immediately got all the Jakes Hamburger joints to follow him to BEK. US Foods Got the dudes cell phone, laptop and went to his house looking for where he copied Jakes Order Guides. Went pretty far before the settlement with the lawyers.

When I quit US Foods and went to Performance Food Group (big Contract). I was back in my Brazilian Steak houses the next week and the new US Food salesman saw me, PFG got a letter the next day from USF Attorneys, I was told by my HR Lady I could not set foot in their parking lot for a year. She said it wasn't worth a law suit.

I was told by our lawyer that non competes in Texas don't work because Texas is a right to work state.

Not necessarily true and depends on the field...they are common in dentistry for example. If specific language is used, specific penalties assigned, and the terms are reasonable for the field they are enforceable. Buddy of mine has one and his company has and will sue for violation.

Right to work doesn't mean you can violate employment contracts. Plus, most people can work in another field that's not a direct competitor.

Then you "should" be in pretty good shape....but I'd still consult an attorney, especially if they have one.

I wasn’t forced to sign it at the time if termination it was about a year ago. No severance but was paid all outstanding commissions.

I would ask for a copy of the no compete you signed and read it very thoroughly. There may be an exclusion if they chose to terminate you. I gather you're commission based so passing off old customers to a new salesman night not work but they can always be traded.

Ah, that sounds like a scam, alright. I’d at least talk to a lawyer. You never know about laws, but it sure doesn’t seem right to me, on the surface.

Yep, lawyer up. Never been a fan of em but over the years it’s been money well spent, no doubt

It will not be cheap but it can be done. Your cost here is the big unknown

Been there done that.....Texas is a right to work state........they lose in court 100% of the time.......it’s all about trying to intimidate you to comply......

I've been asked to sign two and declined both. I had a conversation with them and explained my point, both allowed me to continue to be employed without the no compete. One of the companies actually hired me from one of their customers and then wanted me to sign a no compete That was an interesting conversation.

Good luck, I don't have anything to add...see an attny and/or talk to your current/new employer about it. I assume you told them when you got hired you had signed one, some companies will help you fight it.

A former employer decided one day to pass around non-compete agreements to the entire company. Blanket agreement which was most likely unenforceable. At the time we had 110ish employees, and my guess is probably fewer than 20 (the younger group, mostly new hires) actually signed. Most of us just ignored. It was a big deal for about a minute, and facing widespread departures, the company backed off.

As mentioned above, it is my understanding that non-competes need to be pretty specific in detail on prohibited companies, territories, time, etc. to be enforceable. Unfortunately, many companies will shy away from potential employees just to avoid the hassle of defending a new hire with a non-compete.

2003.
Over filing on workmanship comp...
They Can terminate ya...
They had lawyers on payroll.
Got a lawyer. He got new office, & more clients...
It ruined my credit...
Ended up on the streets,no one would hire...

dang Gov been spying on me ever since...

Best wish's...

^ This. The non compete totally depends on how it's written. Yes, they CAN hold up, but a lot of them can be beaten when fought for legally. But you will have to hire an attorney for it.

That's not a correct statement. I know of many non competes that were written well by the former employer and held up in court. They are 100% real. The best option is to not sign one. I wouldn't sign one at a former employer and I told them so initially. It never came up again.

I guess they expected you to work, some.

The generic almost form letter type NC, probably the most common, don't stand up well to challenge.
If it gets before a judge, anything seeming unreasonable gets it tossed out.
Very few generic NC are reasonable, basically intimidation, most folks out of a paying job don't want to incur possible legal expenses.

If it gets this far;
Before a Judge, he or she will determine if the NC is reasonable, if it is, you will be arguing why the NC is unreasonable in scope, and then the definition of ' compensation beyond ' in your specific case, which is a muddy area with an undefined sliding scale.

Any severance, bonus or compensations that are not a part of the former employees usual and customary defined pay plan, or not outlined & defined in the employee handbook, or in writing could be considered compensation beyond. An employees signature acknowledges & accepts the terms set.

For commission based employees any projected or future commissions the employee is paid at time of severance or beyond the severance date could be considered compensation beyond.
So if your commission based and the former employer pays you for any commissions beyond your severance date, you're going to have a really hard time with defending compensation beyond.
You'll be left with reasonable vs unreasonable.

If the NC is deemed reasonable in scope, and the former employee was ' compensated beyond ', the chance of resolution in favor of the former employee is basically none.

Good thing, very few get this far.

On the other hand, an individual well written, detailed and reasonable non competes are very enforceable, especially for executive level employees.
Near to iron clad if the former executive employee was ' compensated beyond '.
If an employment contract is involved, rest assured the particulars surrounding resignation or termination are reasonable and very carefully worded.

' Right to work ' and or ' At will ' has nothing to do with non competes.

I'ts correct for me, how many have you fought in court? I fought 2 and won both.......