Pool service company Non Compete

[JDS2282]

I worked for a swimming pool service company for approx 10 months. They sold the pool route to someone else and the new owner kept me as well as the other guy servicing the pools on payroll. Approximately 3 weeks later made us both sign non compete causes stating that we will not "acquire or enter in the solicitation,service or repairs of any pool service accounts acquired by the company". One week later they laid me off and kept the other guy. The "employee agreement" was for a 5 year period and technically I was not an employee of the company as I was getting 10-99 through my LLC. My question is how much do you think this would stand up in court if a few customers quit his services and switched to mine?

 

[quincy]

I worked for a swimming pool service company for approx 10 months. They sold the pool route to someone else and the new owner kept me as well as the other guy servicing the pools on payroll. Approximately 3 weeks later made us both sign non compete causes stating that we will not "acquire or enter in the solicitation,service or repairs of any pool service accounts acquired by the company". One week later they laid me off and kept the other guy. The "employee agreement" was for a 5 year period and technically I was not an employee of the company as I was getting 10-99 through my LLC. My question is how much do you think this would stand up in court if a few customers quit his services and switched to mine?

What is the name of your state?

 

[JDS2282]

Arizona

What is the name of your state?

I live in Arizona

 

[JDS2282]

I can post the entire agreement word for word if you'd like

 

[quincy]

I can post the entire agreement word for word if you'd like

Please do not post the contract. Document review goes beyond the scope of this forum and into the practice of law, for which you need to hire a lawyer licensed to practice in your own jurisdiction.

Thank you for providing your state name.

There are problems that I see with the non-compete that you signed that could make it unenforceable, including the 5 year restriction.

 

[FlyingRon]

Further, Arizona law is kind of predisposed against such. There has to be some benefit to the employee as well. Firing you a week after they made you sign is pretty much negating any illusion of a benefit. Furhter, it appears this lacks any legitimate business purpose oither than solely to try to discourage competion and is against public policy.

Frankly, I'd ignore it and let him try to sue you. It's easy to hand out "contracts" and threaten to sue. More involved to actually file a lawsuit and very difficult in these circumstances to prevail.

 

[JDS2282]

Please do not post the contract. Document review goes beyond the scope of this forum and into the practice of law, for which you need to hire a lawyer licensed to practice in your own jurisdiction.

Thank you for providing your state name.

There are problems that I see with the non-compete that you signed that could make it unenforceable, including the 5 year restriction.

Thank you for your response. I too thought the 5 year period was a little outlandish and unenforceable. Also at the top of the contract it stated " Employee Non Compete Clause" and I was never technically an employee of the company according to payroll. I was paid 10-99 without tax withholding. Again,I appreciate your info

 

[JDS2282]

Further, Arizona law is kind of predisposed against such. There has to be some benefit to the employee as well. Firing you a week after they made you sign is pretty much negating any illusion of a benefit. Furhter, it appears this lacks any legitimate business purpose oither than solely to try to discourage competion and is against public policy.

Frankly, I'd ignore it and let him try to sue you. It's easy to hand out "contracts" and threaten to sue. More involved to actually file a lawsuit and very difficult in these circumstances to prevail.

It seemed as though he had this planned in my opinion. Knowing the customers where use to seeing me service their pool,and knew if he let me go they would likely follow suit and continue to use me to properly maintain their pool. These customers had no idea who was buying their account. Thanks for the information Ron, it's much appreciated