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Compete with last employer

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ekeneu2000

Junior Member
What is the name of your state (only U.S. law)? New York & Maryland

My concern is as follow: I started a business on the side while working for another company. The business remained dormant during my time working for that company. The next year after I quit however, my business began earning revenue doing something different from what my last employer does (given the non-compete clause in my employment contract). 3 years later now, I am considering getting into the same line of work as my past employer. My employment contract is explicit in stating that I may not compete in any way with my employer during employment and for at least 1 year after employment. While I was under employment the year my business was formed, I am able to show that there were no competing activities conducted and furthermore the activities that ensued the following year were neither in direct/indirect competition nor in conflict of interest with my past employer employer.

Given this, I would like to know what some legal ramifications are in deciding to get into the same line of work as my past employer now (3 years later). I should mention that the solution they offer, and of which I'm getting into, is only one of the several solutions I offer. Furthermore, I have not tampered with any previous clients; in fact, I am focusing on a different market segment - the public sector, whereas their client base is primarily within the commercial sector. I am also in a different state now.
 
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latigo

Senior Member
It seems if there is a question here about covenants not compete, you’ve supplied the answer. Any existing covenant presently operative or not, by definition you wouldn’t be vioalting because you wouldn't be incompetition..

Because covenants not to compete are by nature restrictive of trade and commerce, and thus against public policy, they are generally looked upon with disfavor by the courts.

To be enforceable they must be supported by adequate consideration; protective of a genuine business interest; reasonable in scope of time and space and they do not unduly interfere with the promissor’s ability to seek a livelihood.

None of what you have given would appear to supply any one of those elements.

Sax
 

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