Can my employer enforce 3rd party do not compete I was not aware of?

My boss has put a division of our company up for sale. He made sure to contact all companies in our industry in a 50 mile radius. He made them sign a confidentiality agreement (understandable) but a clause in this agreement states that none of those companies can hire any of our company employees for a 3 year period. Basically it has eliminated me from getting a job elsewhere in my industry for 3 years. The employees were not informed of this. I only found out inadvertently. Can he do that??

2 answers  |  asked Jul 3, 2012 11:20 AM [EST]  |  applies to Pennsylvania

Unlock Non-Compete Agreements: Keys to Escape

Answers (2)

Doris Dabrowski
A lawyer must review the exact wording of the purported agreement and the actions of the parties to opine about the existence of an enforceable contract and potential claims of interference with prospective contracts. I cannot give you an opinion without a thorough review of the facts. You and your colleagues may contact me if you wish a consultation.

Doris Dabrowski
1525 Locust St.
Philadelphia, Pa. 19102
215-790-1115

posted by Doris Dabrowski  |  Jul 5, 2012 07:10 AM [EST]
Christopher Ezold
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania, New Jersey or Federal law apply, unless otherwise specified.

That being said, I find the situation you describe very curious. Why on earth would these competitors sign such an agreement? What would they get for it? I suspect that the agreement isn't enforceable, if it exists at all (he may have lied to you about it), but I cannot tell unless I review the document. If he contacted every competitor with the aim of pretending to offer his company to them in order to get a nonsolicitation agreement from them, which he would then use as an asset in selling his company to a real buyer, then I suspect the agreement is not enforceable at all.

If you would like to discuss this matter further, please feel free to contact me at the below address(es) or telephone number.

/Christopher E. Ezold/
The Ezold Law Firm, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com

posted by Christopher Ezold  |  Jul 3, 2012 11:52 AM [EST]

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