Can non compete clauses hold up if you want to change jobs and go to a competitor?

Question

I work in CO which is a "right to work" state. When I took this job the non compete agreement was given to me 2 months after I started. Also, it was not notarized or anything? Any help? Thanks.

Answer 1

The "right to work" issue won't always save you. It just depends on how far the company will go to hold up the agreement. Two examples that I have experienced myself:

Wal-Mart Home Office--doesn't allow you to go to work for a vendor for five years. Here, it gets a little tricky. If a vendor wants to hire you, they risk the threat of a lawsuit and their products being cut. However, my best friend did go to work for a vendor in a non-competing capacity (they called it administrative, not sales) for five years. The vendor took the risk and it was fine.

My experience with a staffing agency. They poured over my non-compete with their corporate lawyer for a month before hiring me. The final decision was for me not to put it out there that I was working for them, and if the former employer decided to take action, they would immediately let me go.

So, yes. It can hold up. The "right to work" issue comes in when your field is so specialized, say a welder for example, and that's all you know how to do--you have to be able to provide for yourself. Of course, that is subject to interpretation state to state, so just do your research.

I hope this helps.

Answer 2

It is worth your while to speak with an attorney in Colorado specifically, as the laws vary from state to state. Generally speaking, a non-compete agreement, in order to be valid and enforceable, requires that it be reasonable. What is reasonable varies from industry to industry. But it must not be overbroad in limiting your ability to work, and in protecting the rights of your current employer.
In some states this means that it must be limited to a reasonable time and a reasonable geographic area as well as a reasonable limitation in the tasks that may or may not be performed.
A geographic limitation could be worlwide, and still be considered reasonable if that is the geographic area that your employer services.
A reasonable time may be as long as two years, although some are for longer.
A reasonable restriction frequently includes advising others, and is not limited to just you doing the direct work.
There are more issues, however. You indicated that you signed this after you were already an employee. Did you receive anything in exchange for this promise not to compete? If not, there is a question as to whether there is a proper contract. If you did not receive anything, that could be what is knowns as "failure of consideration."
Without proper compensation, you have only half a contract. The only way to be certain is to speak to a professional in your state. Since you are talking about your ability to engage in your livelihood, it is well worth the investment.

Answer 3

Yes. Non compete clauses do hold up in court. However, the court says that the non compete clause must be fair to all parties. It cannot restrict your right to employment.

Definitely check with an attorney who specializes in employment. It can be that your position with the competitor may not in any way harm your original employer.

amadeus

Answer 4

Non-compete agreements are being challenged in the courts as being a "restrictive covenant" (bar to future employment), especially where an employee has no access to proprietary information.

Non-competes were designed to protect a buyer of a business from having to compete with the original owner who has opened up a similar business. It gives the buyer some time - normally 3 years - to build a reputation and a clientele base.

Answer 5

When you signed the agreement with the non-compete clause you signed a contract.

And in my experience a contract is only as good as your willingness to enforce it?

Are they willing?

Will they go to the trouble and expense?

Do you care?

Answer these questions then decide.

Answer 6

They do hold up in court. It does not matter that you live in a "right to work" state. All you can do is hope they let you out of it, or, you can go to work in an area outside the range stated in the contract.

Answer 7

"right to work state" doesn't have anything to do with non-compete agreements. If you signed it, it probably would be binding. Most of the time, they aren't notarized.

Good luck.