Non-compete agreement

I have accepted a position with a company and given notice to my employer. My current employer sells products, my new employer rents different products (but some are the same as my current employer sells) I forgot that I have a (broad, vague and general)non-compete agreement. My current employer is now contemplating legal action. What are my options?

1 answer  |  asked Apr 29, 2009 3:39 PM [EST]  |  applies to Pennsylvania

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Answers (1)

Christopher Ezold
An employer that rents products may not be competing with an emploeyr that sell the products.

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, an employer that rents products may not be competing with an emploeyr that sell the products. I say "may" as this is a very fact-specific matter. If the rental market never takes a bite out of the sales market, then there appears to be no 'legitimate business reason' for the noncompete. In Pennsylvania, a noncompetition agreement MUST HAVE a legitimate business reason.

Furthermore, you may be able to avoid problems by avoiding products that your current employer sells. Many noncompetition agreements are also void based on failure of consideration, overbreadth and other reasons; it is possible that it is not enforceable regardless of legitimate business reason.

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.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585

posted by Christopher Ezold  |  Apr 29, 2009 4:04 PM [EST]

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