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Is non-compete in faraway state valid?

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BestJack

Junior Member
What is the name of your state? NJ

I do part-time freelance telephone research work for a company in Indiana, averaging less than $100 a week, and very erratic. For the past two weeks I had $20 worth of work. All of their clients I have done work for are in the Midwest. I would like to offer the same service to companies in NJ, but I did sign a non-compete clause that said I may not engage in the same service for 2 years after termination.

Am I really barred from creating my own small, part-time business here? I am curious as to what the likelihood is of them suing me...and what is legally binding in what they wrote.

What if I was to need a full-time income, would I legally be forbidden to do what I do for two years? When I began the work, I needed the extra income, and didn't contest the non-compete.

I really can't afford to hire an attorney on this, but advisors at SCORE suggested I clarify matters re the non-compete before I begin.

Thanks to anyone who offers advice.

JackB
 


GatorLaw

Member
Is there any geographical limits on your non-compete clause? Generally courts will read in a reasonable geographical limitation on non-compete clauses, depending on the nature of the work.
 

BestJack

Junior Member
No geographic limits.

There is no geographic limit. The work is done by telephone.
 
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BestJack

Junior Member
Am aware of that.

Yes, I understood. No need for capital letters. There is no geographic limit in the contract's non-compete clause.

I added the info about the work, because perhaps the employer might make the case that because the work is done by phone, perhaps the employer might assume the employee's place of residence was immaterial. Or they view their sales territory as unlimited.
 

cbg

I'm a Northern Girl
No one here can interpret an agreement they have not read with any accuracy. You would do better taking a copy of the agreement to an attorney in the pertinent state. Many give free or low cost consultations.
 

BestJack

Junior Member
which state?

no, I wasn't expecting a legal opinion specific to my contract. (You'd need ESP, since I haven't even given the clause itself!)

I was just looking for a general sense of this issue, especially as it pertains to freelancers/part-timers working at a distance and for minimal amounts, and clauses with no geographic restriction.

Also, different states have differing overall responses to non-competes, so I thought there might be those in NJ or IN who'd chime in.

I would need to speak to an attorney in which state? The one in which the business is located, or mine?

Thanks for your feedback.
 

pattytx

Senior Member
no, I wasn't expecting a legal opinion specific to my contract. (You'd need ESP, since I haven't even given the clause itself!)

I was just looking for a general sense of this issue, especially as it pertains to freelancers/part-timers working at a distance and for minimal amounts, and clauses with no geographic restriction.

Also, different states have differing overall responses to non-competes, so I thought there might be those in NJ or IN who'd chime in.

I would need to speak to an attorney in which state? The one in which the business is located, or mine?

Thanks for your feedback.
Start with your state.
 

seniorjudge

Senior Member
Here's a general rule.

The reasonableness of a non-compete clause is determined by looking at the time and the space.

For example, ten years on the one hundred block of Main Street (even numbers only) is probably reasonable.

Another example, the entire known universe for 24 hours is probably reasonable.
 

BestJack

Junior Member
But I >love< Main Street...

The relevant variables are a 2 year limit (in the clause) and an actual distance of 600 miles (no geographic range given in the clause).
 

seniorjudge

Senior Member
But I >love< Main Street...

The relevant variables are a 2 year limit (in the clause) and an actual distance of 600 miles (no geographic range given in the clause).
600 miles is the geographic range.

In any event, 2 years within 600 miles seems to me to be overbearing.
 

BestJack

Junior Member
the clause doesn't discuss where, just for how long. Being that I'm 600 miles away, then, it sounds like I might make a case for their territorial expectations being excessive, in that they don't specify a limit (I'm still contacting a local lawyer, of course, but just wanted some opinions at the outset.)

Thanks, all.
 

seniorjudge

Senior Member
the clause doesn't discuss where, just for how long. Being that I'm 600 miles away, then, it sounds like I might make a case for their territorial expectations being excessive, in that they don't specify a limit (I'm still contacting a local lawyer, of course, but just wanted some opinions at the outset.)

Thanks, all.
A suggestion:

Since there is no mention of a geographic boundary, we must assume that it means the whole United States.

Thus, two years is completely unreasonable.

Just a thought....
 

BestJack

Junior Member
Does the fact that there's barely any work now, and that I was told that I'd have as much work as I wanted have a bearing? (In your general opinion?)
 

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