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Non Compete questions

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P

Plastic

Guest
What is the name of your state? Nevada

I was recently fired from a position as Regional Sales Manager.

As a condition of my being hired, I was required to sign an employment agreement that included a non-compete clause.

The non compete clause was pretty severe. It stated that for a period of five years after my termination or resignation, I could not call on any person or property I had any contact with while I was employed with the company.

Specifics: I am in the Food and Beverage Sales industry. According to this contract, if I was selling plastic cups to executives in this market, and was fired, I would not be able to sell french fries from another company to them for five years after I was terminated.

Question: Is this enforcable? It seems really extreme. To what degreee is it enforcable if I chose to work for a competing company, and/or if I chose to work in another side of the industry?

Thank you.
 


I AM ALWAYS LIABLE

Senior Member
Plastic said:
What is the name of your state? Nevada

I was recently fired from a position as Regional Sales Manager.

As a condition of my being hired, I was required to sign an employment agreement that included a non-compete clause.

The non compete clause was pretty severe. It stated that for a period of five years after my termination or resignation, I could not call on any person or property I had any contact with while I was employed with the company.

Specifics: I am in the Food and Beverage Sales industry. According to this contract, if I was selling plastic cups to executives in this market, and was fired, I would not be able to sell french fries from another company to them for five years after I was terminated.

Question: Is this enforcable? It seems really extreme. To what degreee is it enforcable if I chose to work for a competing company, and/or if I chose to work in another side of the industry?

Thank you.


My response:

From every source I can muster, it appears that "Non-Compete" agreements, in the employment context, are unlawful in the State of Nevada. Contact the Nevada Department of Labor and pose your question to them. Also, with the information you obtain from the DOL, contact an attorney to write a nice, but firm, letter to your former employer to set them straight on this issue.

IAAL
 
P

Plastic

Guest
Thanks for the quick reply.

One more thing: the company is in HQ'd out of state, in Conn., while I was employed in Nevada. Would this make a difference?
 

cbg

I'm a Northern Girl
Very likely not. I don't know of any state that would approve a five-year non-compete, but in any case, you live in Nevada, so Nevada law applies to you. If the state of CT does approve this (which I doubt) only CT employees could be held to it in most cases.
 
P

Plastic

Guest
Thanks to you both. I conacted the Nevada Dept of Labor. They confirmed that there is no law on thier books recognizing a non-compete clause. Meaning, in thier eyes, it is non-enforcable.

Now to the important part: The State of Nevada says it is non-enforcable, and does not recognize non-competes, but can the company still sue me in a civil manner, or sue the new company, if I go to work for a competitor? If so, what are ther chances of winning based on the State of Nevada's position?

Thanks again
 

I AM ALWAYS LIABLE

Senior Member
Plastic said:
Thanks to you both. I conacted the Nevada Dept of Labor. They confirmed that there is no law on thier books recognizing a non-compete clause. Meaning, in thier eyes, it is non-enforcable.

Now to the important part: The State of Nevada says it is non-enforcable, and does not recognize non-competes, but can the company still sue me in a civil manner, or sue the new company, if I go to work for a competitor? If so, what are ther chances of winning based on the State of Nevada's position?

Thanks again
My response:

I'll repeat what I have already said - -

"Also, with the information you obtain from the DOL, contact an attorney to write a nice, but firm, letter to your former employer to set them straight on this issue."

You need to place the company "on notice" of the law, and of your concerns. If they should file a lawsuit against you (which they would need to do, not your new company), you'll be able to claim "malicious prosecution".

IAAL
 

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