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Thread: Non-compete clause?

  1. #1
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    Non-compete clause?

    I am trying to switch from a premier agent to Cingular B2B, or at least contemplating the move. The problem is that I have a non-compete agreement with the agent. Has anyone had any luck getting out of this technicality, as my understanding is that these things usually are not that enforceable? Cingular's lawyers are looking into the matter for me, but I am looking for some reassurance from someone who may have gone through this. Thanx!

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    Why whould this clause apply to you after you terminated employement with your current employer?

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    First of all, an entity cannot issue a covenant to not-compete contract to an employee. These types of contracts only apply to the sale of business or with business people, usually executives. Therefore, you are all set.

    However, generally speaking and to further protector your toosh (just in case), the contract made be also void if it's clearly unconscionable. For example, if all your skills are vested in wireless sales, and the contract is barring you from reasonable employment, then the court will probably cancel the covenant.

    Why do I know all this stuff? It's going to be covered on the CPA exam

    don't rely on my pseudo legal advise!! use at your own discretion!
    Last edited by Guest 221; 10-04-2006 at 11:02 PM.

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    my understanding of a non compete was that you wouldnt work for the competittion and solicit your old clients?
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    That's usually the purpose of one, along with not using your former employer's confidential information in your new job at one of their competitors.

    Quote Originally Posted by strickzilla
    my understanding of a non compete was that you wouldnt work for the competittion and solicit your old clients?

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    My current employer has made clear they dont want me going to work for the new company,as they are a premier agent they dont want me going to corporate. My issue is they have let other people out of te non-compete that went to work for other cellular companies, but not to corporate of the carrier. (No one has tried, that I know of in my company). My managers now wont even talk to me, literally I call them and they will NOT talk to me. The job will offer much better money, and I will not be selling to the same customer base as one job is in retail and the other is in B2B.

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    you need to look at it for what it really it.

    A contract is only good if a party is willing to enforce it. Are they willing to take you to court to try to enforce the terms of that contract?? I highly doubt it... They know this too, and that's probably why you're getting the "Cold Shoulder".

    Your only problem is if CINGULAR has a "no hire" agreement with your employer. Then there's nothing you can do, because Cingy will just not hire you.

    but that's not what it sounds like you have from what you described.

    Of course... there's allways the "Other" way... you could force your current employer to fire you... but, while that could be FUN, it is not a good thing to do.

    Good Luck...

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    unless you have a contract with your employee they have nothing to enforce. As an employee, you have "at will" status. You can get fired just because or you can quit. A non compete cannot legally be enforced. employers make you sign these to scare you, it means nothing.

    3 years ago I left a company I was working at for 8 years, had quite a big customer base. When I told them I was opening my own store they flipped out and started the whole non compete crap. I told all my customers what I was doing and it was up to them to decide who/where they wanted to do business. I didn't bad mouth them or hide anything from anyone. They tried to "take me to court" they couldn't legally find anything that I did wrong.BTW 90% of customers came with me and are still with me.

    Don't sweat it, take care of yourself and don't worry about them, they get over it eventually.

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    A friend of mine got around it. He was unhappy with the agent he worked for and was planning on leaving to go to either Verizon or back to Best Buy but wanted to go corporate if possible. He sat down with our Cingular top guy and told him that he was leaving the agent regardless and he wanted to stay cingular but would work for Verizon if he couldn't get in. So their choice was lose an awesome salesperson (I mean it he was PHENOMONAL) or take him when he completed his two weeks. Albiet no one in the agent company knows where he is but for them it was a matter of losing a good salesperson or sticking to the agreement.

    If they want you bad enough they will get around it so just show them what you've got and cross your fingers.
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    Quote Originally Posted by .7
    Why whould this clause apply to you after you terminated employement with your current employer?
    Come on .7 thats when they start!

    Ok now read it. First make sure it specifies an end date, but more importantly there must be language in it that says when it starts. You would be surprised how many do not. If that's the case it starts on execution. Meaning it's one year( and one year is all that's enforceable in most states for employees that are not owners of any kind) from when you signed it and not from when you leave, so if you have been there for a year you're good to go. Also remember cell contracts are 2 years long so it would be difficult to prove because they have to site(prove to a judge that something has happened) accounts!

    Keep in mind many of these contracts are scare tactics, if you are not stealing customers they may not sue you because of expense and embarrassment for attempting to limit a workers income. I once saw a judge just smile and dismissed it. Most of the time they go away before any trial if you just get a laywer to answer the complaint.

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    Okay, I was in the same position as you. The agent I was working for had an agreement that stated that I had to be unemployed for 6 months before I could work at corporate.

    Bottom-line, It's solely up to Cingular's discretion. Cingular can choose to hire you or not based on their own decision. Remember, if you get hired, it's Cingular who basically can get sued for breach of contract. Because the agreement is a buisness contract with your employer and Cingular. So if they choose to hire you, your current employer can sue Cingular. However, since most of them are exclusive dealers, most of the time they won't risk losing a buisness contract over an employee. In my case, I got hired by corporate and hav eno problems. Good Luck.
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    Quote Originally Posted by Infornography
    Okay, I was in the same position as you. The agent I was working for had an agreement that stated that I had to be unemployed for 6 months before I could work at corporate.

    Bottom-line, It's solely up to Cingular's discretion. Cingular can choose to hire you or not based on their own decision. Remember, if you get hired, it's Cingular who basically can get sued for breach of contract. Because the agreement is a buisness contract with your employer and Cingular. So if they choose to hire you, your current employer can sue Cingular. However, since most of them are exclusive dealers, most of the time they won't risk losing a buisness contract over an employee. In my case, I got hired by corporate and hav eno problems. Good Luck.
    Where did you get that? Cingular can't breach a contract they don't have. The OP signed a contract not Cingular! Using trade secrets may be another story but you guy's are selling contracts that are published.

    Think about what you are saying, you are suggesting Cingular has a contract with every employer on Earth or every employer has a contract with Cingular!

    BTW; back to the OP, does this agreement specify any geographical area? If not or it is unreasonable the contract is worthless.

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    All I can say is good luck I was trying to go back to a position I held for quite some time. (stupid me left to go to an agent).... I was in the same positon as you about 8 months ago... I pretty much was hired, when they asked for a copy of the non-compete I signed.

    They sent it to cingular legal, and Legal said NO...

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    Ouch! We were never given a non-compete to sign (believe me we've checked); it's just an oral agreement between Cingular and the company. So I have a chink in the wall when I need to pull it out.

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    Quote Originally Posted by Sonix
    Where did you get that? Cingular can't breach a contract they don't have. The OP signed a contract not Cingular! Using trade secrets may be another story but you guy's are selling contracts that are published.

    Think about what you are saying, you are suggesting Cingular has a contract with every employer on Earth or every employer has a contract with Cingular!

    BTW; back to the OP, does this agreement specify any geographical area? If not or it is unreasonable the contract is worthless.

    It's true however. Of course, not EVERY employer but there ARE exclusive dealers who do sign non-compete contracts with Cingular just to make sure they don't get the bad end of the deal by training sales reps, having good sales reps and losing them to corporate via benefits or better pay. I've seen people get turned down by corporate because of these non-compete agreements. It was something I myself was worried about.

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