I currently work for corporation selling industrial supplies however I have had an opportunity presented to work for a current competitor as a franchise owner.
Being that I will be sacrificing my salary, benefits, 401K, etc in return to earn much more in comission, etc. I will need the help of my current customers to come with me and buy from my new franchise.
I have heard that non-compete is not enforceable in California but have heard that my employer (based out of IL) can create a lawsuit in there state and make it difficult.
Is anyone familiar with this? I feel it is hard to get honest advice from a lawyer because of course they want money and I do not want to pay to expunge something that does not need to be expunged in the first place.
?2017-09-22T00:37:41Z
It depends on the circumstances. With what you have said....it is a pretty clear case you are benefiting from relationships you formed during your current employ. You could likely be successfully sued.
Non compete AGREEMENTS are enforceable to some degree in EVERY state, and unenforceable to some degree in every state. An agreement that prohibits taking current customers with you for 6 months is ALWAYS enforceable. An agreement attempting to prevent you from ever working in the field again would not.
yes, they are enforceable. the extent is limited ... however, in essence, your current customers and the relationship is the property of your employer, not of you. Taking that relationship to profit for yourself is actionable in civil court ... and you get to pay own attorneys as no one will take your case on speculation.
There's a whole body of law as to what the limits are -- and you can be certain that trying to sell to your current customers in competition with your [then] previous employer is well within the limits of what you can NOT legally do.
You are WRONG. WHO did you hear that from? Some dimwit knowitall? A non-compete clause is enforceable if it is in your contract/something you signed. Further, employers always sue over such a breach - because it costs them so much money and breach of contract results in treble damages in most states so, you will lose big time if you breach your contract. This is not legal advice because, I am not a lawyer but, I am familiar with non-compete clauses and I suggest you comply with what you signed. Otherwise, you would be destroying your career. Further, dragging the franchise into such a situation and lawsuit - you would be facing fraud and breach of contract from the franchise owner too. You need to straighten out your ethics. In this situation, it is more important than ever.
The ones that are non-enforceable are those that deal with your skills and experience. They can't stop you from using skills you developed while working for them. Those skills are yours to take wherever you go.
However ... if you are going to use clients you are dealing with for the company, then they can stop you. The clients, even though you deal with them, are the COMPANY's customers, not yours. Your customer database belongs to the company. ... if you are going to use copyrighted/trademarked techniques and manuals, then they can stop you. That's material that belongs to them or that they have the license to use.
So, you can take your skills with you, and build a new client base for your your franchise, but you can't approach your old customers to pull them into your business, even if they want to.
Note: this is NOT legal advice; it is simply informational, based on observation where there were non-compete clauses in Canada, the US and other countries. It always boils down to the physical (like a database or a client list or copyrighted material) vs skill/knowledge/experience gained. None of the non-compete clauses can stop you using WHAT you have learned, but they can stop you from using the PHYSICAL representations like lists