Non-compete

I signed a non-compete clause with my company who contract with hospitals to provide sleep labs. Since I signed that contract under one title the compnay has since changed my title without a new contract. The hospital recently gave notice that they are ending the contract and would like to hire me. However the organizaiton says I can't violate my do not compete. The compete says I can't work within 50 miles for 1 year. The sleep lab business will be gone, however an oxygen company that they own will still be in town. Can they hold me to the non-compete even though they won't have a sleep lab?

1 answer  |  asked May 21, 2006 6:41 PM [EST]  |  applies to Florida

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Answers (1)

Donna Ballman
Non-compete issue

They can probably enforce as to the oxygen business, but not as to the sleep lab. Once they close it down, they have no interest to protect (unless they still have another one close by).

Most non-compete agreements say that they are assignable to a successor company. If it expired or is not assignable, that may be another defense.

However, the sad reality of non-compete agreements is they could still sue, and most people can't afford to fight the suit.

I suggest the best course of action is to try to work out an agreement with them to allow you to work in the sleep lab business as long as you don't solicit their customers. Many businesses will limit the restriction if they obtain advice from their counsel that the restriction is overbroad.

posted by Donna Ballman  |  May 22, 2006 09:23 AM [EST]

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