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Non-compete clause for temporary/seasonal employment?

I've read that a non-compete clause (where you sign a statement saying that you won't go to work for a competitor) is invalidated if the company lays you off. Recently I came across a variation, where a company talked with me about providing tax training needed to work for them (including use of their proprietary tax preparation software). The rep said that if I underwent the training I'd have to sign a non-compete clause saying that I wouldn't go work for any other company that prepares taxes (which would include any accounting firm) for two years, even though the company would only be providing work to me for three months out of the year. Is such a clause enforceable under these circumstances?

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  • Anonymous
    1 decade ago

    A company can write anything into a contract that they want - it doesn't mean it is legal or enforceable. From the sound of it, this is too broad to be useful.

    You can raise a fuss about the legality of it, or you can just smile and nod, knowing you can do whatever you want regarding their clause.

    Honestly, unless you make a big deal out of it, or if you are a high-profile person, this company won't even know you are going elsewhere. The costs involved with bringing a suit against you for a breach of contract really isn't worth the return it could bring them.

    Source(s): I AM NOT A LAWYER. CONTACT A LAWYER FOR LEGAL ADVISE.
  • ?
    Lv 7
    1 decade ago

    They wont be able to enforce it because it is too broad. These type are routinely struck down. They cannot deprive you of a right to work and make a living. Restrictive and limited ones such as you cannot work at one across the street may be enforceable where there are many other similar firms available. Sign without concerns and work.

    Source(s): Lawyer
  • 5 years ago

    I am assuming that no special meaning is applied to the phrase "termination" in the contract. If the non-compete clause runs out one year after termination of employment, then at one year plus one day after the last day of your employment, the non-compete clause will no longer apply. To terminate is to end. It does not mean the same thing as "his employment was terminated" (which is really just a polite way to say "he was fired"). Your employment has ended. It was terminated. The fulfillment of the contract is a form of termination. -- diff_shades_...: You work in a law firm but you don't know what a clause is? In a contract, a clause is a term or condition of the agreement.

  • 1 decade ago

    probably too broad -- and may depend on state law where you live.

    clearly ok -- agree to not solicit work from clients and prospects met while working for them for a reasonable period after ceasing work

    maybe ok -- agree to not work for direct competitor to your location for reasonable period, etc.

    probably not ok -- agree to not work in same field after being laid off for lack of work -- courts routinely hold that right of employee to make a living supersedes any such broad prohibition

    enforceable limits must be reasonable as to both place, time, and customers. all others are unenforceable -- except, of course, that you can be sued and forced to expend own funds to defend yourself. solution to that is to countersue for [XXX, YYY, and ZZZ] as your state permits.

    Source(s): retired businessman
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  • 1 decade ago

    If you sign and agree to it, then it's a contract and is enforceable.

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