My non-compete does Not designate a distance

The company I work for is based in Seattle, WA. My office is located in my home. The company is a national referral service for senior housing and senior care. Paragraph 9 of the Proprietary Information and Inventions Agreement states the following:

"9. Noncompetition. During the term of my employment or consulting relationship with the
Company and for two years following the termination of my relationship with the Company for any reason, I
will not, without the Company’s prior written consent, directly or indirectly work on any products or services
that are competitive with products or services (a) being commercially developed or exploited by the
Company during my employment or consultancy and (b) on which I worked or about which I learned
Proprietary Information during my employment or consultancy with the Company."

Under "inventions" the geographical distance is "the world" or "world-wide".

I want to start my own referral service or possibly become a licensed branch of another existing referral service. Is this possible? Thank you.

2 answers  |  asked Sep 16, 2010 6:57 PM [EST]  |  applies to Ohio

Answers (2)

Neil Rubin
In addition to Bruce's comments I would add that a geographic limitation is important. However, just because this is absent, it does not mean the agreement will not be modified and/or enforced. As I have stated many times before on this website, don't mess with this. This scenario is fraught with danger. Get an employment lawyer to give you an opinion.

posted by Neil Rubin  |  Sep 21, 2010 6:42 PM [EST]
Bruce Elfvin
Non-compete agreements in Ohio, and I can only assume your agreement would be interpreted under Ohio law, are subject to full modification by a court. The Courts in Ohio recognize that a non-compete is legal insofar as it protects the legitimate interests of the employer and does not prevent the person from making a living. Without knowing more about the industry you are in and the specific agreement, it is highly likely that at least some parts of the non-compete will be upheld even with modifications.

You would be served well to talk with an employment attorney about the non-compete and its reasonableness before embarking on the new venture. You can select an employment attorney near you at: www.oelasmart.net/directory

posted by Bruce Elfvin  |  Sep 17, 2010 07:10 AM [EST]

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