thekoolguy11ok
Junior Member
What is the name of your state (only U.S. law)?
Colorado.
Hi,
I've currently been presented with a potential opportunity to move to a different company in my industry with in the greater Denver market and had questions about the legitimacy of the non-compete clause in my current contract with reference to my particular circumstances.
I began working with my current company in Alaska, which is where this contract was written for. The terms of my contract stipulated that I was to remain in AK for 1 year. After 10 months, per their request, my company moved me to Nashville (for a work-stay of 3 months) and recently now to Denver so that I may begin work in the market soon. The part of this situation which seems fuzzy to me is in regards to some to the language used in my contract. It is copied below.
"7. RESTRICTIONS. During the term of this Agreement, Employee agrees to devote his best efforts and his entire time to further the interests of the Company and he shall not, directly or indirectly, alone or as a partner, officer, director, or a stockholder of any other institution be engaged in any other commercial activity whatsoever or continue or assume any other corporate affiliations without the written consent of the Company. Under no circumstances will Employee work for a competitor, or have any financial interest in any competitor of the Company.
The Employee shall not, directly or indirectly, for his own account or as a proprietor, stockholder, partner, director, officer, employee, agent, or otherwise for any business, firm, corporation, partnership, or entity, entice, solicit, recruit and/or hire any employee of the Company at any time during the Employee’s employment and for two (2) years commencing with the termination of this Agreement for any reason.
The Employee shall not, directly or indirectly, for his own account or as a proprietor, stockholder, partner, director, officer, employee, agent, or otherwise for any business, firm, corporation, partnership, or entity, entice, solicit, recruit and/or enter into a business or employment relationship with any client or prospective client of the Company at any time during the Employee’s employment and for two (2) years commencing with the termination of this Agreement for any reason.
The Employee specifically agrees not to compete with the Company in its Anchorage market for one (1) year after his termination of this Agreement for any reason. (In the event that Employee transfers within Company to another branch office, he agrees not to compete with Company in that local market for a period of one (1) year after his separation.)
Employee acknowledges that a violation of the restrictive covenants set forth in this Paragraph 7 would cause irreparable harm to the Company, and that it would be entitled to seek a restraining order and damages from him. "
The portion of this that concerns me is in italics. It seems to me (in lay terms) that concept of my home branch office is very loose, as I've been moved around twice already. Also, I am not credentialed to officially work in Denver currently (and will not be until the end of August) and as of today have not been reimbursed any relocation expenses for my move from Nashville to Denver. In my mind I could just be temporarily visiting until my credentials are in place and my expense are reimbursed.
This contract went in to effect June of 08' and was automatically renewed this past June with accordance to section 3 of my contract (also pasted below).
"3. TERM. This Agreement shall be for one full year, commencing on the date written above, unless earlier terminated. This Agreement, and any and all renewals thereof, shall automatically renew for periods of one (1) year unless either party submits written notice to the other party of the intent not to renew this Agreement. This notice must be given no later than thirty (30) days prior to the Agreement’s termination."
My primary question is if an offer were to be extended by the prospective company X (the are currently evaluating the risk they would take on by hiring me due to my contract), is there any grounds for a legal suit filed against me? Also, although I will find this out soon enough by receipt of an offer or no offer, given the circumstances is the italicized clause in section 7 valid- thus preventing my employment in my industry in the Denver market? It is my position that I have not agreed in writing that Denver is my home branch, especially with regards to my recent history with my company (all the moving around). The only way that I could see that section 7 would be valid is if I signed a new contract stating that Denver was my home branch, but legally, I'm not sure if that makes any difference.
thank you very much in advance for taking the time to review this post and to offer advice,
MaxWhat is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?
Colorado.
Hi,
I've currently been presented with a potential opportunity to move to a different company in my industry with in the greater Denver market and had questions about the legitimacy of the non-compete clause in my current contract with reference to my particular circumstances.
I began working with my current company in Alaska, which is where this contract was written for. The terms of my contract stipulated that I was to remain in AK for 1 year. After 10 months, per their request, my company moved me to Nashville (for a work-stay of 3 months) and recently now to Denver so that I may begin work in the market soon. The part of this situation which seems fuzzy to me is in regards to some to the language used in my contract. It is copied below.
"7. RESTRICTIONS. During the term of this Agreement, Employee agrees to devote his best efforts and his entire time to further the interests of the Company and he shall not, directly or indirectly, alone or as a partner, officer, director, or a stockholder of any other institution be engaged in any other commercial activity whatsoever or continue or assume any other corporate affiliations without the written consent of the Company. Under no circumstances will Employee work for a competitor, or have any financial interest in any competitor of the Company.
The Employee shall not, directly or indirectly, for his own account or as a proprietor, stockholder, partner, director, officer, employee, agent, or otherwise for any business, firm, corporation, partnership, or entity, entice, solicit, recruit and/or hire any employee of the Company at any time during the Employee’s employment and for two (2) years commencing with the termination of this Agreement for any reason.
The Employee shall not, directly or indirectly, for his own account or as a proprietor, stockholder, partner, director, officer, employee, agent, or otherwise for any business, firm, corporation, partnership, or entity, entice, solicit, recruit and/or enter into a business or employment relationship with any client or prospective client of the Company at any time during the Employee’s employment and for two (2) years commencing with the termination of this Agreement for any reason.
The Employee specifically agrees not to compete with the Company in its Anchorage market for one (1) year after his termination of this Agreement for any reason. (In the event that Employee transfers within Company to another branch office, he agrees not to compete with Company in that local market for a period of one (1) year after his separation.)
Employee acknowledges that a violation of the restrictive covenants set forth in this Paragraph 7 would cause irreparable harm to the Company, and that it would be entitled to seek a restraining order and damages from him. "
The portion of this that concerns me is in italics. It seems to me (in lay terms) that concept of my home branch office is very loose, as I've been moved around twice already. Also, I am not credentialed to officially work in Denver currently (and will not be until the end of August) and as of today have not been reimbursed any relocation expenses for my move from Nashville to Denver. In my mind I could just be temporarily visiting until my credentials are in place and my expense are reimbursed.
This contract went in to effect June of 08' and was automatically renewed this past June with accordance to section 3 of my contract (also pasted below).
"3. TERM. This Agreement shall be for one full year, commencing on the date written above, unless earlier terminated. This Agreement, and any and all renewals thereof, shall automatically renew for periods of one (1) year unless either party submits written notice to the other party of the intent not to renew this Agreement. This notice must be given no later than thirty (30) days prior to the Agreement’s termination."
My primary question is if an offer were to be extended by the prospective company X (the are currently evaluating the risk they would take on by hiring me due to my contract), is there any grounds for a legal suit filed against me? Also, although I will find this out soon enough by receipt of an offer or no offer, given the circumstances is the italicized clause in section 7 valid- thus preventing my employment in my industry in the Denver market? It is my position that I have not agreed in writing that Denver is my home branch, especially with regards to my recent history with my company (all the moving around). The only way that I could see that section 7 would be valid is if I signed a new contract stating that Denver was my home branch, but legally, I'm not sure if that makes any difference.
thank you very much in advance for taking the time to review this post and to offer advice,
MaxWhat is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?