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Assistance in deciphering current employers non-compete statement

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tycoonbob

Junior Member
What is the name of your state (only U.S. law)?
Kentucky

Good evening everyone, and I want to thank anyone in advance for shedding in light into this. I also want to make it clear that any advice given on this topic is not legal advice, and if need be I will venture down that path. I just want to get some opinions on this first.

So I have been with my current employer for about 1.5 years now. I love the company, and the people I work with, and the work that I do. I do not love the amount of traveling so much, as well two other reasons that I am looking to leave the company. From here on out, they will be referred to as <Old_Company>. They are a Microsoft partner consulting firm. I work W-2 full time for them, as a Systems Engineering Consultant where I provide Microsoft services (primarily around System Center, Hyper-V, and VDI) to enterprise customers that hire <Old_Company>.
About two months ago I found a job posting for a similar position with another consulting firm with an office in my same city (HQ is in a different city) which I am interested in, and applied for. I had my final interview with them this past Friday, and I think my chances are good. They provide consulting services in the same capacity that I do now, except they target small and medium size businesses, and are NOT just about Microsoft products. I would be working with Microsoft System Center and Hyper-V, but also VMware, EMC/HP/Dell SANs, HP/Dell Servers, Cisco networking, etc. So with that in mind, there is overlap between the two companies, but very little. I will call this new position <New_Company> from here on out. They provide me the opportunity to work with the technology that I want to (virtualization, storage, networking) while being less travel (no weeks out of town at a time), and at least a 20% increase on my base salary (both companies have commission and bonuses).

Now my concern is with the non-compete agreement that I signed 1.5 years ago with <Old_Company>. Here is the clause that has me confused, as well as the recruiter I am working with:

Employee specifically agrees that during employment with <Old_Company> and for a period of one year following termination of employment for any reason whatsoever Employee will not (except on behalf of <Old_Company>), directly or indirectly:
solicit for business or serve or do business with, in a similar role or function to Employee's role or function with <Old_Company>or in any capacity related to the information technology services or products provided by <Old_Company>, any customer of <Old_Company> for whose account Employee provided any services (whether or not billed or of a billable nature) during the one year period immediately preceding termination, and Employee will not influence or attempt to influence any customer of <Old_Company> to terminate or modify any agreement or potential agreement or course of dealing with <Old_Company>

Now when I read the statement, I can read it in two different ways. The first being that I cannot work in a consulting capacity for a period of one year after termination with <Old_Company>, but I don't see that as being logical. The second way I have read it is that I cannot work with any of the clients that I have worked with through <Old_Company> for a period of one year, in any capacity, including consulting.

-----
solicit for business or serve or do business with [SNIPPED] any customer of <Old_Company> for whose account Employee provided any services[...]

in a similar role or function to Employee's role or function with <Old_Company> or in any capacity related to the information technology services or products provided by <Old_Company>
-----

By removing the phrase between the comas, it seems that I would be fine.

It's not clear, and that's usually the goal of these non-competes. I have discussed this with <New_Company> and have pretty well determined that none of the clients I have worked with at <Old_Company> have any relationship with <New_Company>, which makes sense since <Old_Company> targets Enterprise customers and <New_Company> targets SMB.

Thoughts?

Thanks!
 


single317dad

Senior Member
The way I read it, as long as you're not doing work for the same customers, or soliciting those customers to migrate to the new company, you're fine.

There are two sides to the NCA argument: on the one hand, they can't restrict you from gainful employment; agreements that accomplish that are not very enforceable. On the other hand, they can drag you into court and cost you so much in legal fees that you have to give in to them, so avoiding confrontation for a year is wise.
 

tycoonbob

Junior Member
Excellent. That is pretty much what I thought it would come down to, and I hope it never comes to either of those. I have a pretty good relationship with my current employer and this company is big on allowing their employees to do what they love. I just wanted to now whats the worst that could happen, as I like to plan for the worst case scenario.
 

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