restrictivie covenant question

[normnmiles]

I have a question regarding an employment contract i signed. this contract has a restrictive covenant agreement which says i will not work for the client until my contract is up.

the clause is as follows:

"In consideration of the terms of employment and the efforts and costs incurred by [EMPLOYER], you agree you shall not solicit Client or engage in a like or similar profession or occupation at Client's facility or any other facility at which you are directed to or actually perform services under this agreement, either directly or indirectly, for a period of one hundred eighty (180) days following the termination of your employment under the terms of this agreement, unless specific written authorization has been obtained from [EMPLOYER]. You agree that any violation of this provision will result in you paying to [EMPLOYER] an amount equal to three hundred twenty (320) hours at the hourly rate as stated in 3(a) above as compensation for [EMPLOYER]' efforts and costs incurred in connection with your employment hereunder."

The "Client" is defined as "Worldcom Wireless".

I have been offered a job by another division of Worldcom actually Worldcom Service Direct. This division is independent from Worldcom Wireless and I am not responsible for any services to them under the contract. Nor have I performed services for them. If i take that position would I be in violation of this agreement? I don't think I would be in violation of the agreement but would like some advice. Thank you.

[This message has been edited by normnmiles (edited October 15, 2000).]

 

[lawrat]

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

"not solicit Client or engage in a like or similar profession or occupation at Client's facility or any other facility at which you are directed to or actually perform services"

You will not be in violation of this agreement if you did not solicit Client or do not engage in a like or similar profession or occupation at Client's facility or any other facility at which you are directed to.

That last part is very vague. I think you will not be in violation. Also, there is a question as to the possible unreasonableness of 180 days as a time frame for non-compete.

There are some recent past postings and answers about non compete. In them are hyperlinks to some great articles about the general validity of non-competes. You might find them helpful.

 

[normnmiles]

Sorry i will try to clearify. (NEW stands for the new division that is offering me the permanent position and CURRENT is the division I currently have the contract with) I have been offered a permanent position by another division(NEW) of Worldcom. This division(NEW) is independent of the division(CURRENT) I currently have the contract with. I am worried that if I take the permanent position with the other Worldcom division(NEW) that I would be in violation of my contract. I guess I am asking whether or not different divisions of the same company "Worldcom" are considered to be the same "company" or different "companies" under this contract. Hope this clears somethings up. Thanks.

 

[lawrat]

Doesn't clear anything up. I think it is safe to say the agreement you signed is void for vagueness reasons.

Hence, you aren't bound.