Non Compete Agreement

[borreman]

What is the name of your state? Nevada

Our closest competitor in the industry just closed their doors. The owner (now without a job) has offered us his expertise to work for us as an independant contractor. However, as we were signing the work contract, he refused to sign the non-compete agreement we established claiming that he still possesses the business license of the previous business, and as such, it would be a violation to sign the agreement, since he is still in business legally speaking. Is he right?

At the same time, we will not hire him if he does not sign a non-compete agreement, which makes perfect sense. Any other clause/addendum we can add to protect ourselves?

He pretends he will not bankrupt his business, and will let it go for 2 years if he can (some kind of tax issues apparently...). Anyway, it just smells fishy. Just wanted to have some feedback on this.

Any help appreciated.
Thanks!

 

[Some Random Guy]

If an employee is difficult when they are being hired, do not expect them to change after they are hired.

But, if you still want him, feel free to change the non-compete to match his situation. Specify that he will not pursue or perform any business except for your company while contracting with you. It may just be that he has some outstanding receivables that he wants to pursue while working for you.

 

[Betty]

You can also contact an employment or contract attorney to help you with the non-compete to be sure your interests are protected.

 

[smorr]

Please seek the advice of an attorney who has an expertise in employment law. This is utmost before you hire this guy. I work for attorneys who do employment law and contract law. The repercussions of hiring him without the non-compete can be devastating to your company. The legal fees can go into the tens of thousands and then some. If your attorney advises you not to hire him, listen to that attorney. If the attorney can finagle a concrete way to hire him without liability to you, make sure it's all in writing. If the guy still refuses to sign, don't bother with him. If your first instinct is that it smells fishy... it probably does!

 

[eerelations]

What is the name of your state? Nevada...he refused to sign the non-compete agreement we established claiming that he still possesses the business license of the previous business, and as such, it would be a violation to sign the agreement, since he is still in business legally speaking. Is he right?

He's:

a.) Wrong and doesn't realize that just because he holds a business license doesn't mean that he's actually competing with your business;

or

b.) BSing you because he wants to work for you so he can get access to your client list or other business records and use them to compete with your business, without having a signed non-compete hanging over him.

Either way, I reco you don't hire him 'til he signs that agreement.