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Possible Noncompete Issues

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sirEgghead

Junior Member
Companies A and B provide IT services as direct competitors. Company C used to be a client with company A in the past. Company B holds a contract with company C. Company C is currently a client of company B. Company A is trying to obtain that client contract for themselves. I am employed by company A and have a job offer from company B to work in a full time position at company C. I have not ever worked on anything for company C. Would it violate my non compete clause if I take this position?
 


justalayman

Senior Member
Have you read your contract? If so your a step ahead of anybody here. Without reading your contract AND knowing what state this is in AND whether you are an independent contractor or an employee (I realize you said you are employed by company A but many people that are IC's refer to themselves as being employed by some company when I truth they aren't) nobody can even guess at an answer.
 

eerelations

Senior Member
Have you read your contract? If so your a step ahead of anybody here. Without reading your contract AND knowing what state this is in AND whether you are an independent contractor or an employee (I realize you said you are employed by company A but many people that are IC's refer to themselves as being employed by some company when I truth they aren't) nobody can even guess at an answer.

Like button.
 

sirEgghead

Junior Member
Have you read your contract? If so your a step ahead of anybody here. Without reading your contract AND knowing what state this is in AND whether you are an independent contractor or an employee (I realize you said you are employed by company A but many people that are IC's refer to themselves as being employed by some company when I truth they aren't) nobody can even guess at an answer.

I have read the contract multiple times. I discussed this issue with my recruiter and my potential boss and they both say there is no way this is competition. They also state that my current/ex employer would have no leg to stand on as a court case.

What could I elaborate to help understanding on the subject?
 

justalayman

Senior Member
I have read the contract multiple times. I discussed this issue with my recruiter and my potential boss and they both say there is no way this is competition. They also state that my current/ex employer would have no leg to stand on as a court case.

What could I elaborate to help understanding on the subject?

Well, if one is to accept a somewhat generic non-compete contract, your actions do appear they would violate such a contract. You would be moving from company A to company B to perform a competitive service. Working for company B at client C's business is irrelevent

But as to clarifying things; you could start with providing the information concenring the state involved and employee or IC

Even that info wont allow a dependable answer since, again, what is in your contract is an unknown.
 

sirEgghead

Junior Member
Well, if one is to accept a somewhat generic non-compete contract, your actions do appear they would violate such a contract. You would be moving from company A to company B to perform a competitive service. Working for company B at client C's business is irrelevent

But as to clarifying things; you could start with providing the information concenring the state involved and employee or IC

Even that info wont allow a dependable answer since, again, what is in your contract is an unknown.

The relevant state is Georgia. The noncompete clause is as follows:

During the term of the Employee's employment by the Company and for a period of five (5) years following the termination of such employment for any reason whatsoever, the Employee shall not (except on behalf of or with the prior written consent of the Company), within the Area, either directly or indirectly. on her own behalf or in the service or on behalf of others, engage in, be employed by or consult with any business providing or offering to provide products or services similar to the Business of the Company as it is then carried on, either as an independent contractor, partner, joint venture, or as an officer, director, stockholder, agent, employee, manager, supervisor, administrator, consultant, producer, instructor or salesman for any person, firm, partnership, corporation, or other entity or in any other capacity which involves duties and responsibilities similar to those undertaken for the Company, engage in any business which is the same as or essentially the same as the business of the Company. It is the express intent of the parties that the Area, as that term is defined herein, is the area where the Employee performs or performed services on behalf of the Company under this Agreement as of, or within a reasonable time prior to, the termination of the Employee's employment hereunder.
 

justalayman

Senior Member
Georgia law does allow noncompetes. The duration of your agreement exceeds what is considered reasonable but the law allows a court to amend a contract. That means the 5 year period, while likely not enforceable, can be amended by a court to be acceptable (apparently 2 years is the magic number)


Other than that, if the services you will be providing are substantially similar to those performed at company A, I
think you may have a problem.

To me, it is so apparent you would be violating the contract I wonder how the recruiter and possible future employer can say so matter of factly they don't see a problem. How is performing the same or substantially similar activities for another company not be a violation of the cobtract ?
 

sirEgghead

Junior Member
Georgia law does allow noncompetes. The duration of your agreement exceeds what is considered reasonable but the law allows a court to amend a contract. That means the 5 year period, while likely not enforceable, can be amended by a court to be acceptable (apparently 2 years is the magic number)


Other than that, if the services you will be providing are substantially similar to those performed at company A, I
think you may have a problem.

To me, it is so apparent you would be violating the contract I wonder how the recruiter and possible future employer can say so matter of factly they don't see a problem. How is performing the same or substantially similar activities for another company not be a violation of the cobtract ?

I agree with your point of view 100%. Thus why I'm so confused.
 

Mass_Shyster

Senior Member
Georgia law does allow noncompetes. The duration of your agreement exceeds what is considered reasonable but the law allows a court to amend a contract.

This may depend on when the noncompete was signed. A new law took effect in GA in 2011 that gave employers many rights. If the contract was signed before that, it may be unenforceable.

If the new employer is willing to pick up the legal expenses, it may be worth the risk.
 

sirEgghead

Junior Member
This may depend on when the noncompete was signed. A new law took effect in GA in 2011 that gave employers many rights. If the contract was signed before that, it may be unenforceable.
Signed in 2015.

If the new employer is willing to pick up the legal expenses, it may be worth the risk.
Very interesting point. Thank you for that. I will certainly address that with them.
 

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