No Compete Agreement | My Employment Lawyer

No Compete Agreement

Here is my situation.

A and B are two sister concern companies managed by single owner located at same address. When I joined company, I signed non-compete employement contract pertaining to company A (My employer name was mentioned as company A in contract). I didnt bother at that time because I thought that I will be joining company A. When I got my first paycheck I was surprised that it was issued in the name of company B, so I called my employer and he told me that I dont have to worry about it because both A and B are sister concern companies. I was on payroll for 2 1/2 years with company B. My medical insurance was covered under group insurance managed by company A. Couple of months ago they started issuing paycheck in the name of company A who's contract I signed during the time of initial joining.

Here is the exact wordings for non compete clause

A. During employee’s employment by employer and for a period of twelve (12) months after employee ceases to be employed by employer, employee shall not work within United State directly or indirectly, either for employee’s own account officer, employee, agent or otherwise, be employed by, connected with, participate in, consult or otherwise associate with other business, enterprise or venture that is the same as, similar to or competitive with employer. By way of example, and not as a limitation, the foregoing to convert to other sellers or providers of the same or similar products or services as provided by employer, any customer, client or account of employer with which employee has had any contact during the term of employment.

B. Employee agree not to solicit for employment or be employed, as either employee or contractor, by any client of employer (direct or indirect) for whom employee has performed or is performing service either directly or indirectly (by using an intermediary or otherwise) without the written consent of employer, for a period of twelve (12) months after the date of employee’s termination of employment


Here are my question

1. Is this contract valid ? (Signing contract with A and worked for B for 2.5 years).
2. If I leave current company A, can they enforce non-compete agreement on me.

Thanks.

1 answer  |  asked Jun 13, 2005 09:53 AM [EST]  |  applies to New York

Answers (1)

David M. Lira
Validity of a Non-Compete Agreement

Whether a particular non-compete agreement is valid depends on a number of considerations.

You need to contact a qualified attorney to set up a consultation.

posted by David M. Lira  |  Jun 14, 2005 07:22 AM [EST]

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