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re: Non-compete contracts

Posted on 7/19/18 at 1:37 pm to
Posted by jflsufan
Baton Rouge, LA
Member since Mar 2013
4997 posts
Posted on 7/19/18 at 1:37 pm to
Was there any form of compensation given for you signing the non compete? I believe these are difficult to enforce unless very specific and the employee received compensation (bonus, ownership, deferred compensation plan, etc) for signing the non compete.
Posted by lsufan1971
Zachary
Member since Nov 2003
23688 posts
Posted on 7/19/18 at 1:40 pm to
quote:

Seek competent counsel from a legal expert in the relevant jurisdiction


Good advice. It depends on the language of the non compete and the state where you reside. We have non competes with our sales team. I doubt our owner would ever enforce because he hates dealing with attorneys.
Posted by Presidio
Member since Nov 2017
3060 posts
Posted on 7/19/18 at 1:41 pm to
As has been said, get paid legal advice.

Another piece of this that's often overlooked though is that while non-compete's are generally tough to enforce non-disclosure's are enforceable.

Say you're working for CompanyA and quit to go to work for CompanyB doing the same work. The signed non-compete may not be worth paper it's written on. But CompanyB gets a full data dump on the practices, pricing, etc of CompanyA from you? THAT is enforceable. It's hard to prove, but can be done.
Posted by Pettifogger
I don't really care, Margaret
Member since Feb 2012
85873 posts
Posted on 7/19/18 at 1:47 pm to
And even if a restrictive covenant is ultimately deemed unenforceable, at what cost? Is your new employer going to stick with you if a dispute arises? If a lawsuit is filed, who is funding that litigation?

You need sober advice from someone who can consider the law and your situation and give you a comprehensive assessment of what you may face.
Posted by soccerfüt
Location: A Series of Tubes
Member since May 2013
72744 posts
Posted on 7/19/18 at 1:52 pm to
quote:

Which constitutional provision we talking about here?
Easy, the Third Amendment.

"Quartering" has been extended to mean suppression of freedom to do anything you want in the OP's world.

"No Soldier shall, in time of peace be quartered in any house, without the consent of the Owner, nor in time of war, but in a manner to be prescribed by law."
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
36317 posts
Posted on 7/19/18 at 1:53 pm to
quote:

Was there any form of compensation given for you signing the non compete? I believe these are difficult to enforce unless very specific and the employee received compensation (bonus, ownership, deferred compensation plan, etc) for signing the non compete.

I believe this is only if you signed it after you started working. If you sign it before you started working, then your salary qualifies for the compensation.
Posted by IAHTiger
Lafayette
Member since Mar 2018
220 posts
Posted on 7/19/18 at 1:55 pm to
I'm no lawyer nor real expert on this matter but I do have a fair amount of direct experience from both vantage points (employee and employer).

State of residence / where work is occurring matters - right to work states approach these agreements from a different vantage points.

Did you get something in return (cash/equity) for signing non compete? If so, it has to be defined on terms of monetary items and time as well as geography.

It also has to define the nature of the business covered in specific terms. Broad terms kill non competes generally.

If you signed something and got paid for it then look to the cause of action (breach) and remedy section. Many non competes covering non executives that I've seen are very specific in what they preclude the employee from doing (don't solicit our current employees, customers and/or try to steal this type of work) Again, the more specific its defined and if they gave you a monetary amount deemed equitable for signing the agreement then it will hold up.

Keeping someone from working as a project estimator in an entire industry seems way too broad -- unless you got paid like Jim B from the Shaw Group.

Agreements signed as part of employment packets (employees signing along with all other customary paperwork) are very, very tough to enforce.

Even if you break the agreement check out the remedy section... Many times in basic agreements the remedy, even if they pursue it, is nothing more than you stopping what you are doing... So, there is very little downside to pushing the envelope. The mediator or court will then tell you exactly what you need to stop doing and it will be specific. Stay away from these customers on this type of work, stop contacting employees for potential poaching etc.


If you have serious cash on the line go and hire an experienced labor attorney. Their advice will be worth a little more than the nuggets of wisdom on TD

Posted by PearlJam
NotBeardEaves
Member since Aug 2014
13908 posts
Posted on 7/19/18 at 2:00 pm to
quote:

right to work states
Refers to laws regarding labor unions and has nothing to do with non compete agreements. I'm not reading the rest of your bs, but op be cautious about following legal advice in this thread.
This post was edited on 7/19/18 at 2:02 pm
Posted by Keeble9145
Member since Sep 2015
978 posts
Posted on 7/19/18 at 2:03 pm to
I’m in Houston and I’m pretty sure it said I couldn’t work for or solicite myself to any construction Company within 30 miles. I received no payment for signing it but that’s only if signed while already working for the company. The things that they have taught me won’t really be used as I have a different scope of duties for my next job. They have no proprietary tech or info that any other general contractor don’t already use. From what I remember it was definitely written VERY broad and not detailed to what job I was doing. I have zero contact with their customers etc
Posted by Mr Wonderful
Love City
Member since Oct 2015
1045 posts
Posted on 7/19/18 at 2:06 pm to
quote:

Easy, the Third Amendment.


Ahhh, yes. That’s the one. I couldn’t remember off the top of my head.
Posted by ithad2bme
Houston transplant from B.R.
Member since Sep 2008
3647 posts
Posted on 7/19/18 at 2:14 pm to
Even in instances where they are difficult to enforce, I have seen the fact that one was signed be a great reason for someone to be tied up in depositions and court so that they can't do their new job and get fired.
Posted by kingbob
Sorrento, LA
Member since Nov 2010
69284 posts
Posted on 7/19/18 at 2:22 pm to
Louisiana courts really don’t like non-competes, and the legislature has outlined very specific circumstances when they can be enforced. I’m not a licensed attorney, so I legally cannot tell you the specifics, but if I were, I would ask the following questions:
1. Does the non-compete specify a time period?
2. Is it limited to a specific geographic area that explicitly names the parish or parishes (that last part may differ based on a circuit split).
3. How similar is the new position to the old one?
Posted by slackster
Houston
Member since Mar 2009
91320 posts
Posted on 7/19/18 at 2:28 pm to
quote:

No, you are being tricky. The non-compete issue does not apply until you are hired. Since you have the right-to-work, no non-compete contract can keep you from working somewhere else.


quote:

I believe these are the facts


quote:

yoga girl


, they aren't.
Posted by lostinbr
Baton Rouge, LA
Member since Oct 2017
12632 posts
Posted on 7/19/18 at 2:38 pm to
From what I understand (again: not a lawyer) non-competes are easier to enforce in Texas than Louisiana. That said, “any construction company within 30 miles” sounds a little ridiculous. Residential roofing companies don’t compete with industrial piping contractors. I’d bet that the language is more specific than that, but maybe not?

If you don’t have the actual agreement anymore and can’t get it without asking HR or a manager, you’re in a pickle. You have to ask yourself 1) how much of an upgrade is the new job, 2) what irreversible damage will be done if they find out I’m job hunting and I end up staying?

If you have a copy of the agreement and are still on the fence, one thing you COULD do is bring it to the potential employer. I wouldn’t do it unless you already have an offer and even then it’s risky. But it could save you some heartburn if they do go after you. I say this because even if your lawyer says you’re in the clear, your new company still has to make the decision whether to fight it or shitcan you if they get a cease and desist.
Posted by doubleb
Baton Rouge
Member since Aug 2006
41733 posts
Posted on 7/19/18 at 2:56 pm to
How about talking with your future employer to make sure that you have the new job, and tell him about the non compete. Let him know you want the job, but tell him you have to go talk to your old boss and make sure he has no problem with you leaving.

Then go talk to your boss. Tell him about your plans. Tell him you want to give a proper notice, and suggest two weeks.

He may fire you on the spot, he may ask you to work two weeks or a month even, or then he might say no.

I would do that before I hire an attorney.
Posted by tigerfoot
Alexandria
Member since Sep 2006
60657 posts
Posted on 7/19/18 at 2:59 pm to
quote:

So easy to get around.

this is always the first response and always from someone who has never been issued a cease and desist while in violation of a well written non compete.
Posted by tigerfoot
Alexandria
Member since Sep 2006
60657 posts
Posted on 7/19/18 at 3:01 pm to
1. term
2. geography defined by parish
3. scope of employment

Basically if these three things are met you have a hard time in La.
Posted by tigerfoot
Alexandria
Member since Sep 2006
60657 posts
Posted on 7/19/18 at 3:02 pm to
quote:

. I have zero contact with their customers etc

Even if you were bound to it, they will not give two shits if you leave if you dont show up with one of their customers.
Posted by Keeble9145
Member since Sep 2015
978 posts
Posted on 7/19/18 at 3:07 pm to
I agree and it’s a substantial raise. 40% increase in pay. Otherwise I wouldn’t even consider going through the hassle of messing with all of this.
Posted by Burlee
Memphis, TN
Member since Aug 2006
7324 posts
Posted on 7/19/18 at 3:14 pm to
quote:

You have the constitutional right to work where you please.





If drafted correctly with reasonable temporal and spatial constraints, non-competes are absolutely enforceable. They are frowned upon, but enforceable. There are many exceptions to enforceability and your new job being in a different field to some extent may help your argument. Most judges look for an excuse not to enforce these.
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