Sales & Non-Competes


I signed what my company refers to as a "Key Employee Agreement". I have contacted a local $200 an hour attorney who tells me that it is enforceable, but too broad. I work for an organization (healthcare related) based in New Jersey. I had to sign the non-compete during my "training" almost four years ago. The non-compete states I have to be out of the industry for a period of twelve months. I had no choice. I have been approached by other (same industry) organizations
who would like to hire me, but they are concerned about the non-compete. They spoke to my attorney. I feel he has done a basic job but I can't continue to incur the expense. The other organizations, who are looking at me, have asked me to get a signed release from my current employer. I am in no position to ask for that...this surely would send up a "red flag" to them. Two employees have recently left. One went to a competitor in CA. Another to a medical carrier (insurance) in Texas. Neither of them have been approached by my organization. A rep. who came over from a company my company acquired resigned back in December of last year. My company sent him a letter from their attorney mentioning breaking the non-compte. Three months went by before they approached him again. His new company's attorneys fought that "battle" for two months or so and my employer finally dropped it.
What are your thoughts? I reside in Texas. All of our existing clients are locked into term contracts. The relationships within my territory I had were already in place prior to joining this company. I understand about divulging company secrets. I have no problem with that. Forgot to mention that I am in Sales.

1 answer  |  asked Oct 23, 2002 5:14 PM [EST]  |  applies to Texas

Answers (1)

Trey Henderson

It sounds like you have already gotten good advice. There are many other considerations than the mere enforeability of the non-compete, such as the attitude of the company. Will they try to enforce it? Will they be damaged if you compete against them? I am sure that the attorney you consulted went over this with you. For more on the laws of non-competes, go to

posted by Trey Henderson  |  Oct 23, 2002 5:20 PM [EST]

Answer This Question

Sign In to Answer this Question

Related Questions with Answers

Have an Employment Law question?