How to work around a non compete clause

Hi,

I'm currently employed by Company A (Indian entity of a US based company) and in the US on a H1 visa (state IL) and I have a non compete clause in my employment letter which goes as below.

During your assignment with Company A and for one (1) year following the termination of your assignment for any reason, you will not, without the prior written consent of Company A, directly or indirectly (i) be employed by, engage in or associate with any competitor, client or competing vendor of Company A; or (ii) solicit, for competitive business purposes, (a) any employee of Company A or (b) any customer of Company A, or any of its affiliates with which you were involved as part of your job responsibilities during the last twelve (12) months of your employment or deputation with Company A

I have been with Company A for the past 3 years and now have an opportunity to move ahead in my career with Company B which is a US based consulting firm. I'm not sure if Company A and Company B may have been or are currently competitors (taking into consideration that Company A is an Indian entity of a US based company)

I want to know what are my options at this point. I have heard that non compete clauses are supposed to be time and place bound, but in my case it is just time bound. Also Company A is a huge IT company and will be competition to each and every IT services and Consulting firm around the world. Given this fact and that my non compete is very broad and generic, it looks like I will not be able to work for any IT company in the world for a year after I leave company A!!!

I have also heard that in California the non compete clauses hold no good, so would I be ok if I can get the offer letter from Company B from a California based office and join that entity? Do I have any option to work around this?

2 answers  |  asked Nov 12, 2013 11:55 AM [EST]  |  applies to Illinois

Answers (2)

Anthony Cameron
Oops,

There is no MEL lawyer in Lake County.

I have referred work to Kristin Case and Aaron Maduff and both are excellent. Either would be a good place to start. But, again, you'd be fine with any MEL attorney in the collar counties.

Every Good wish.

Tony Cameron

posted by Anthony Cameron  |  Nov 12, 2013 1:47 PM [EST]
Anthony Cameron
You have a little bit to work with here. Part of the adhesive nature of non-compete/non-disclosures is the uncertainty of outcome built into them. It is important to know whether you were paid anything specifically for the execution of the agreement, whether you gained any equity participation and what you gave up to come to this job. Do no skimp here. Find a MEL Lawyer, give that lawyer all the documentation and have a consultation. It even matters the exact location of your employer within Illinois because the Five Appellate Districts in Illinois are not in accord on a number of non-compete issues. Run, do not walk to a MEL (make sure it's a MEL) lawyer. Looks like you are in Lake County, probably smart to stay there with your counsel.

I'm no help. I'm 320 miles away.

All the best,

Tony Cameron
Quincy, IL

posted by Anthony Cameron  |  Nov 12, 2013 1:41 PM [EST]

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