non-compete agreement

[jkurmaskie]

I signed a non-compete agreement for a new job I started in January. I live in Tennessee and the company is based in Mississippi. My understanding is that the laws of the state you reside in determine how enforceable the non-compete is. I had an employee that worked for me in California and after terminating her the company said they would not fight any challenge to the agreement by her because non-competes are hard to uphold in this state.

My company was recently sold, and I am now out of a job. I was informed that the method with which the company was purchased allows the non-compete I originally signed to be transferred to the new owners. My non-compete covers a 1 year period.

I have several questions.

1. Does Tennesse side strongly with employers or employees with regard to non-competes?
2. I was Director of sales with 5 reports. The agreement I signed states that I cannot call on accounts that either I or my direct reports called on. This would effectively eliminate any chance of my joining any company in the same business. Is this enforceable in Tennessee? The position I am talking to a company about is a lesser position, more regional than national in scope.
3. If I challenged the agreement, how much might typical litigation cost me?

I appreciate any and all responses.

 

[ALawyer]

California law effectively bars most non-competes. Other state laws differ. And the wording is critical in other states.

However, the most effective thing to do is ask an employment lawyer in your state for advice -- a clever one will come up with grounds to get around it 90% of the time in circumstances such as yours.