Going to work for a client but client will still retain agency, non-compete valid?
I currently am an Account Executive for an Advertising Agency. I have an opportunity to go work for one of my clients directly in-house doing some advertising as well as some business development work that my current agency does not offer to them. However, they would NOT be letting the agency go, the agency would still retain them as a client. So would my non-compete be valid? It states that it's for two years or 70 miles.
1 answer | asked Oct 29, 2006 08:24 AM [EST] | applies to Pennsylvania
Answers (1)
Your noncompete may be valid, but may not apply to employment with a client.
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 or Federal law apply, unless otherwise specified.
That being said, your noncompete may be valid, but may not apply to employment with a client. In Pennsylvania, a noncompetition agreement must be reasonable in time, geographic scope and substantive scope, and is enforcible to the extent it protects a legitimate business interest of the employer.
I cannot determine whether the noncompete is valid on the facts you provided; however, it appears that your employment with a client may not violate the terms of the noncompete. In-house work that your employer does not do is not competition nor is preventing you from doing suchg work a legitimate business interest of the employer.
However, if your employment in-house with a client does take business away from your former employer, even if the client still remains a client of the former employer, you may be in violation of the noncompetition agreement. I suggest you have an attorney review the document and discuss your situation with you in detail.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Oct 30, 2006 2:05 PM [EST]
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 or Federal law apply, unless otherwise specified.
That being said, your noncompete may be valid, but may not apply to employment with a client. In Pennsylvania, a noncompetition agreement must be reasonable in time, geographic scope and substantive scope, and is enforcible to the extent it protects a legitimate business interest of the employer.
I cannot determine whether the noncompete is valid on the facts you provided; however, it appears that your employment with a client may not violate the terms of the noncompete. In-house work that your employer does not do is not competition nor is preventing you from doing suchg work a legitimate business interest of the employer.
However, if your employment in-house with a client does take business away from your former employer, even if the client still remains a client of the former employer, you may be in violation of the noncompetition agreement. I suggest you have an attorney review the document and discuss your situation with you in detail.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Oct 30, 2006 2:05 PM [EST]
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