Non Compete

[youtoo54]

Arkansas

Valid reason to get out of my non compete?
I have workded for the same company for about 20 years. Recently the company was was sold and I along with it. I was told from the begging from the buyers how "nothing would change for me that would affect me negatively". I was told at the purchase that people who are remaining with the company would have to sign a non compete agreement. Since then my insurance has went up and the coverage is worse, before I was getting 15% of the profit I made and now its been reduced to 10%. Also I was always provided a truck and now I am being charged 500/month out of my bonus to cover it. I used to get paid my overtime and that has been reduced also.

 

[LordofBooks]

In order to get out of the non-compete clause you would basically have to show that the new company's owners have violated your employment contract in a material and significant way. If you can show this, the contract could potentially be voided.

In your case, if your contract has guaranteed you the things that you mentioned, e.g. truck, insurance copay amount, etc., and they aren't holding up their end of the bargain you can use this as justification to void the non-compete term.

On a side note, you can't be underpaid for overtime. It always has to be time and half at the minimum otherwise it's a violation of employment laws. It can be more than time and a half, but it always has to be at least that amount.

 

[swalsh411]

It's also entirely possible that your non-compete is overly broad to begin with and thereby not enforceable.

 

[cbg]

However, and not disagreeing with either of the above posters, the ONLY one who can tell you if the non-compete has been voided by the company's actions is an attorney in your state who has read the agreement in full.

 

[latigo]

Arkansas

Valid reason to get out of my non compete?
I have workded for the same company for about 20 years. Recently the company was was sold and I along with it. I was told from the begging from the buyers how "nothing would change for me that would affect me negatively". I was told at the urchase that people who are remaining with the company would have to sign a non compete agreement. Since then my insurance has went up and the coverage is worse, before I was getting 15% of the profit I made and now its been reduced to 10%. Also I was always provided a truck and now I am being charged 500/month out of my bonus to cover it. I used to get paid my overtime and that has been reduced also.

Why are you asking about voiding “my non compete” when you aren’t subject to one?.

All we are told is that a “covenant not to compete” is being made a condition to your continued employment. Not that you have already agreed to such a restrictive covenant.

Unless the new owners are bound to honor the terms of an existing employment contract they are at liberty to impose such a stipulation.

(Whether or not the restrictions are reasonable in scope of time, territory, activities and protect a legitimate business interest of the employer and therefore enforceable is another matter.)

So it seems that the question is not how do you get out of it. The question is whether or not you want to get into it.

Apparently signing the covenant is not optional with you. So, knowing your own circumstances and employment opportunities, the choice must rest with you.

I think the best suggestion offered is that you have an attorney review the content of the agreement and explain its legal consequences as well as the likelihood of a court enforcing it.

I can tell this, however. Covenants not to compete are not treated favorably by the courts. They are seen as inherently restrictive of trade and some find them against public policy as interfering with the right to earn a livelihood. But they are generally enforceable when found to be reasonable.

For example in Arkansas ”reasonable” means that the restriction is moderately limited as to time, territory, and activity and protects a legitimate business interest.

Also it must be designed to prevent the employee from gaining or passing on an unfair competitive advantage by pirating such things as special training techniques, trade secrets, confidential business information and customer lists.

But again injunctive relief (enforcing the covenant) is available only when the employer proves that the former employee violated the covenant by using private information to gain an unfair competitive advantage.

___________________________

No body can adequately advise you without reading the covenant. So it’s up to you to decide whether to buy the time of a professional.