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Corporations taking away rights??

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CivilRightsRebel

Junior Member
I work for a rather large worldwide corporation. In their "code of conduct" regarding leaving the company, they state you must have permission before being employed with a competitor.

Doesn’t this company “policy” infringe upon our rights? If I no longer work for my company, shouldn’t I have the freedom to work for whomever I choose?
 


L

lg2

Guest
It depends on how binding the code of conduct is. have you signed a noncompetition agreement? Some companies require it, and if it is reasonable, it might validly prevent you from working for someone else for a certain length of time
 

I AM ALWAYS LIABLE

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by CivilRightsRebel:
I work for a rather large worldwide corporation. In their "code of conduct" regarding leaving the company, they state you must have permission before being employed with a competitor.

Doesn’t this company “policy” infringe upon our rights? If I no longer work for my company, shouldn’t I have the freedom to work for whomever I choose?
<HR></BLOCKQUOTE>

My response:

You haven't told us what State you were employed and, you haven't written the exact verbiage of the "Noncompete" portions of your contract. Therefore, the following is from California law, and further, it is only a guess as to whether it is applicable to your particular agreement.

You may be constrained by a certain geographical area; e.g., 5 mile radius, but I don't know this to be the fact. If so, such radius cannot be so large as to be unconscionably restrictive. Nonetheless, you should ask, in writing, for a copy of the contract you signed.

Here are some salient quotes from a California case:

Metro Traffic Control, Inc. v. Shadow Traffic Network (1994) 22 Cal.App.4th 853, 27 Cal.Rptr.2d 573

Business and Professions Code section 16600 provides: "... every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." California courts have consistently declared this provision an expression of public policy to ensure that every citizen shall retain the right to pursue any lawful employment and enterprise of their choice. Section 16600 has specifically been held to invalidate employment contracts which prohibit an employee from working for a competitor when the employment has terminated, unless necessary to protect the employer's trade secrets. (Muggill v. Reuben H. Donnelley Corp. (1965) 62 Cal.2d 239, 242 [42 Cal.Rptr. 107, 398 P.2d 147, 18 A.L.R.3d 1241].)

One commentator closes this analytical circle neatly: "Any attempt to restrict competition by the former employee by contract appears likely to be doomed under section 16600 of the Business and Professions Code, unless the restriction is carefully limited and the agreement protects merely a proprietary or property right of the employer recognized as entitled to protection under the general principles of unfair competition. In other words, it seems that the employer will be able to restrain by contract only that conduct of the former employee that would have been subject to judicial restraint under the law of unfair competition, absent the contract." (Hays, Unfair Competition—Another Decade (1963) 51 Cal. L.Rev. 51, 69, fn. omitted.)

Good luck to you.

IAAL


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CivilRightsRebel

Junior Member
I greatly appreciate your advice and to let you know, I reside in Michigan.

Regarding signing a contact, I did sign something that stated I read and understood their Code of Conduct.
 

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