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LLC and non-compete clause questions

Posted on 5/21/13 at 6:33 pm
Posted by AUsteriskPride
Albuquerque, NM
Member since Feb 2011
18385 posts
Posted on 5/21/13 at 6:33 pm
An ex co-worker and I have left a company in which we signed a non compete clause. We are looking to start an LLC in the same line of work, since said company did very shoddy work - the market is primed for it in Huntsville. A little history about the former boss - he broke federal labor laws by not paying overtime and also refused to pay commission.

My question is would his actions make the non-compete null and void if he pursued legal action, since for all intents and purposes he broke our employment contract? Also, I know this being a grey area, is there any way we can be on the LLC anomalously? What are your suggestions in the case?
Posted by TheOcean
#honeyfriedchicken
Member since Aug 2004
42482 posts
Posted on 5/21/13 at 7:01 pm to
I believe non-compete clauses vary from jurisdiction to jurisdiction. Might want to speak with an atty
Posted by lsufanintexas
Member since Sep 2006
5011 posts
Posted on 5/21/13 at 7:05 pm to
Is alabama a right to work state?

I'm not a lawyer but I have only really seen non-competes enforced then the non-competes are between two companies or when a company has an employment contract with a former employee.

Again I'm not a lawyer so what do I know?
Posted by OTIS2
NoLA
Member since Jul 2008
50118 posts
Posted on 5/21/13 at 8:22 pm to
You need to speak with an attorney familiar with this area of the law...better late than never...
Posted by Eon Blue
New Orleans
Member since Feb 2007
384 posts
Posted on 5/21/13 at 10:43 pm to
No idea about Alabama laws. In louisiana non-competes can be enforced if they follow the statutory requirements. Must state geographical areas, limited to two years etc.
Certain states allow anonymity most do not would be my guess. And as to the other question, it's impossible to know without the entire facts. Interesting though. Maybe you could negotiate out of the noncompete if he is really facing the possibility of labor law violations. Prior to doing anything you should contact an attorney obviously.
Posted by TortiousTiger
Baton Rouge
Member since Jan 2007
12668 posts
Posted on 5/21/13 at 10:54 pm to
The specific language of the noncompete would need to be reviewed in order to answer your question.

Eta: members of alabama llcs are published
This post was edited on 5/21/13 at 10:58 pm
Posted by JoseVargasTX
Heath, TX
Member since Sep 2011
719 posts
Posted on 5/22/13 at 5:14 am to
I was in a similar situation here in Texas with a non-compete and an employer who was not operating with greatest of morals. When I left, they threatened with a couple of letters from attorneys and I had my attorney deliver a return threat to me that we would tell every account they had across the country that they were operating illegally and they never contacted me again.

Attorney cost me about $3,500 and was worth every cent.

With that said, let your attorney review the non-compete and he'll advise you on what you should and shouldn't do.
Posted by AUsteriskPride
Albuquerque, NM
Member since Feb 2011
18385 posts
Posted on 5/22/13 at 5:16 am to
Thanks guys. I'm going to see an attorney today. I'll update with what his recommendations are in this circumstance.
Posted by I Love Bama
Alabama
Member since Nov 2007
37715 posts
Posted on 5/22/13 at 6:59 am to
In Alabama you're golden. Good luck
Posted by Meauxjeaux
98836 posts including my alters
Member since Jun 2005
39947 posts
Posted on 5/22/13 at 12:37 pm to
quote:

We are looking to start an LLC
quote:

A little history about the former boss - he broke federal labor laws by not paying overtime and also refused to pay commission.


Will be interesting to see your views on employee compensation morph as you go from employee to employer.

Best of luck with your new venture.
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