• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Covenent not to compete

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

G

Gambeli

Guest
What is the name of your state? Colorado

I had been employed by a prepress book composition company for eight years when the business was suddenly sold. The new owner employed a PEO — Professional Employer Organization. They made signing a Non Compete contract a condition of future employment. I questioned the covenant because I had and have been doing outside prepress work with my own clients (some for over 20 years). These clients had either never solicited the company or rejected the company to solicit me (I had not solicited them, they came to me by word of mouth). Neither the current owner nor the representative of the PEO commented negatively on my private arrangements. The representative of the PEO stressed that the contract only applied to not soliciting existing company clients.
The entire section states:

"Employees may not solicit business from the Company/Client's existing customers while employed with the Company/Client. Any threat to take the Company/Client's customers will be viewed as an actual attempt to solicit the business and will result in disciplinary action, including possible termination. In addition, employees may not solicit business from the Company/Client for a period of two years after leaving the Company/Client. Departing employees may not use or disclose the prior employer's trade secrets or other confidential information indefinitely.”

A few months after I signed this contract the company permanently lost a large publishing account. I would like to do independent contract work with this publisher. Two of their production managers have solicited me for my resume. Since this publisher is no longer an existing client is it still a conflict to receive work from them?
 


cbg

I'm a Northern Girl
You would do better to take the ENTIRE agreement (not just what you consider the relevant section - context is important) to a local attorney and ask him/her to review it. There are a few things that it's next to impossible to accurately assess on a message board, and interpreting a contract is one of them.
 
G

Gambeli

Guest
It doesn't matter anymore...

Well, 12 hours after posting the case I went into the office and got layed off. I was the last employee, four others were layed off before me. Now there's NOBODY but the boss, his wife, and the office dog.
Finally, since Colorado doesn't recognize the moratorium on soliciting clients I can now go on my merry way! :D

Thanks anyway guys!
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top