Appears to be overly restrictive non-compete, trying to understand the legal limitations

The company is a computer solutions company that provides computer stuff -- software, hardware, networks, and consultants. This non-compete appears to restrict:

* Working for any company that performs this type of "Conflicting Services" within 100 miles of any of their customers, locations, or employees.
* Working for a competitor, if this Company loses the contract.

Can you explain the restrictions in a more general "plain English" way?

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Non-compete

I Covenant and Agree that during my employment with and for two years after I cease for any reason whatsoever to be employed by the Company, I will not within the Restricted Area (defined below) directly on my own or indirectly through or on behalf of a Third Person or Entity:

1. Contact, Solicit, Contract With, or Engage in any discussions with any Customer for the purpose of providing Conflicting Services, or other services, processes or products to any Customer of the Company where those services or products compete with the Services and Products that the Company provided at any time during the 1 year prior to the termination of my employment for any reason whatsoever. The term “Customer” as used herein shall apply to any person or entity that purchased services, processes, or products from the Company at any time during the 1 year prior to the termination of my employment.

2. Authorize or Permit any Competitor of the Company to represent to any Third Person or Government Agency or Contracting Authority that I am Available to work for the Competitor for any work for which the Company is: (a) currently performing, or (b) that both the competitor and the Company are competing, are proposing to compete, or have competed within the 12 month period immediately preceding such contact, solicitation, authorization, or permission.

The “Restricted Areas” includes each of the following areas:
A) 100 mile radius of any Geographic Area where the Company is actually engaged in business
B) 100 mile radius of any Area of any proposed work site or existing or prospective customer office at which Company has submitted a proposal within the preceding twelve months to do business or to perform services
C) 100 mile radius of any Area of any proposed work site or existing or prospective customer office at which Company is preparing to submit a proposal to do business or to perform services
D) 100 mile radius of any Area where Company maintains, engages, or employs sales or service representatives, agents, or employees

2 answers  |  asked Jun 27, 2011 2:15 PM [EST]  |  applies to Florida

Answers (2)

Arthur Schofield
Ms. Towzey seems to have hit on the correct answer. More would need to be known about the company and nature of your work for them. I would recommend that you seek counsel in your area. A consultation would be worth your time and money as restrictive covenants are enforceable and can force you from your chosen career for a period of time, or at lest force you to relocate.

posted by Arthur Schofield  |  Jun 27, 2011 4:06 PM [EST]
Phyllis Towzey
This noncompete restricts you from: (1) competing with the Company (by providing similar services) in any geographic area within 100 miles of any off their offices, employees, job sites or customers; and (2)from allowing a competitor to offer your services to the Company's customers or to customers that the competitor and the Company are both bidding on.

The 2-year time frame is reasonable and enforceable under Florida law. The 100 mile radius may or may not be enforceable -- I would have to know more about how the Company operates within it's service area. My gut reaction is that it's overly broad but, again, I would need more information to advise you.

If you have not signed this agreement yet, try to negotiate a lesser geographic restriction. If you have signed it and are planning to leave the Company, you should consult with an attorney before taking any action which could be a violation.

posted by Phyllis Towzey  |  Jun 27, 2011 3:02 PM [EST]  [ Best Answer - selected by asker ]

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