Non Compete - Other Employees were Offered Clients
I have recently left my employer, it was my choice, and now I have my own business in the same industry. I left my employer because his business was failing, as did other employees.
Around that time another employee left, my former employer told him that he can take clients with him and he is now servicing at least one client. My
former employer is also planning to go
out of business this month.
In my employment agreement, this is the verbatim wording and only reference to non-compete. Is this enforceable or too vague?
NON-COMPETE CLAUSE
The EMPLOYEE agrees not to solicit and/or perform services and/or accept any type of employment with any Client or Clients referred to EMPLOYEE by [COMPANY NAME] during the term of this Agreement and for a period of one (1) year from the date of termination of this Agreement.
Thanks for your response.
Answers (1)
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, to be enforcable, among other conditions a non-compete agreement must protect a legitimate business interest of the employer. If the employer has gone out of business, it will no longer have a legitimate business interest in preventing you from providing services to its clientele.
If you employer does not go out of business, the enforcability of the noncompete will depend on facts that are not set forth in your question, such as when you signed the noncompete, whether you were paid for it, etc.
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.
401 City Line Avenue,
Suite 904
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Dec 10, 2004 11:51 AM [EST]
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