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Non Compete Agreement

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What is the name of your state? Indiana

Earlier this year I was in the process of starting up a computer consulting firm. During that time I was approached with a job offer from a competing company, they led me to believe that this was a secure job and that I would be able to make a good career with this company. I took the job and was forced as part of the employment process to sign a non-compete agreement, that would stop me from opening up a company within 2 years of the time I left them. 90 days later I was laid off. Will I be forced to honor this agreement since they laid me off, or will I be able to open up my company and compete with them?

Robert Waters



Non-competes are always a difficult subject with lots of maybes...

Just because you were laid off does not usually release you from the agreement...

However, whether or not you'll get sued if you compete with your old company depends on them...do they have the money to pursue it? What would they get if they won?

Whether they would win a suit depends on many factors, like your state law regarding such things. Most states have a "reasonable-ness" test to these agreements...2 years sound unreasonable to me.

On the other hand, if you really do take business away from them, or you bad mouth them to their current clients, or...a lot of other things, you might force them to sue.

So...your choices are either take your chances and go for it, or spend some money on a good lawyer first to make sure you're off the hook.

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