1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Help me understand my non-compete clause

Discussion in 'BBS Hangout' started by Sajan, Aug 19, 2013.

  1. Sajan

    Sajan Member

    Joined:
    Apr 18, 2009
    Messages:
    8,339
    Likes Received:
    5,789
    NON-COMPETITION AND NON-SOLICITATION. You agree that both during your employment by Company A and for a period of two (2) years after the voluntary or involuntary termination of your employment with Company A:

    C. If you have worked for Company A in a consulting or other non-sales capacity during the last three years of your employment by Company A, you will not provide services directly or indirectly related to your employment at Company A to any Conflicting Organization in the United States or in any country in which Company A has a business interest. However, you may accept employment with a large Conflicting Organization whose business is diversified, and with a portion of its business that is not a Conflicting Organization, provided that Company A, prior to your acceptance of such employment, shall receive separate written assurances satisfactory to Company A from such Conflicting Organization and from you that you will not render services directly or indirectly in connection with any Conflicting Solution.

    D. Notwithstanding the foregoing, nothing contained in this section 6 shall prohibit you (after your termination of employment with Company A) from taking a position with a general consulting organization whose only Conflicting Solution is the provision of consulting services to the health care industry, so long as you personally do not thereby provide or assist in providing consulting services to a Client with respect to any Conflicting Solution.

    Company A provides software to hospitals. So does company B. If I leave company A, I figured I can't go work for Company B for 2 years after.

    What about working for a hospital that has Company B's software?
     
  2. CCorn

    CCorn Member

    Joined:
    Dec 26, 2010
    Messages:
    21,451
    Likes Received:
    21,271
    My understanding, but I imagine one of the lawyers on the board can explain it better.

    Company A does not want you to go to another software company and sell to their current clients.

    You will be fine working for a company that uses Company A's software, as long as they are not in the same business.

    All the contacts you have met in your time with company A are the intellectual property of company A. They don't want you using that property for the benefit of their competitors.
     
    1 person likes this.
  3. Sajan

    Sajan Member

    Joined:
    Apr 18, 2009
    Messages:
    8,339
    Likes Received:
    5,789
    Gotcha.

    Did you mean Company B in the 2nd sentence there?

    Basically I can't go and work for an competing company and screw over company A with their existing clients.

    My concern was the ability to work for hospitals that use not only company A's software..but also Company B's. Notice I am not working for Company B directly.
     
  4. CCorn

    CCorn Member

    Joined:
    Dec 26, 2010
    Messages:
    21,451
    Likes Received:
    21,271
    I just meant you should be able to work for a company that uses whatever software. You are not the competition, you are the consumer.

    Regardless, if you get the job I would advise having the company that hired you forward the no compete to their legal department before you put in your notice for your current job.
     
  5. Dave_78

    Dave_78 Member

    Joined:
    Oct 12, 2006
    Messages:
    10,809
    Likes Received:
    373
    Does anyone ever try to enforce these?
     
  6. McNultyisDrunk

    McNultyisDrunk Contributing Member

    Joined:
    Jan 7, 2010
    Messages:
    1,213
    Likes Received:
    417
    Sounds like Epic.
     
  7. Yonkers

    Yonkers Contributing Member

    Joined:
    Jun 19, 2002
    Messages:
    8,433
    Likes Received:
    480
    Yes. For various reasons from spite to loss of revenue.
     
  8. CCorn

    CCorn Member

    Joined:
    Dec 26, 2010
    Messages:
    21,451
    Likes Received:
    21,271
    Companies will find loopholes
     
  9. Space Ghost

    Space Ghost Contributing Member

    Joined:
    Feb 14, 1999
    Messages:
    15,084
    Likes Received:
    6,257
    There is a difference between a company enforcing a NCA and a court enforcing an NCA. NCA's vary from state to state.

    Ethics and intentions play a key role for a court to enforce an NCA.
     
  10. Air Langhi

    Air Langhi Contributing Member

    Joined:
    Aug 26, 2000
    Messages:
    21,625
    Likes Received:
    6,257
    Pretty sure they used to be 1 year non compete.
     
  11. the shark

    the shark Member

    Joined:
    Mar 16, 2010
    Messages:
    4,691
    Likes Received:
    3,957
    Is this in the state of Texas?
    If so, Texas is a right to work state, and this non-compete won't hold up in court.

    It's more bark than bite. Sometimes the hiring company will shy away from it as they don't want to go through the hassle of having a potential new hire dragged into court.

    I've gone through this with candidates of mine, and once the old company realized that the employee leaving wasn't going to walk away from the opportunity with the new company they backed down. Just my experience with these.
     
  12. Yonkers

    Yonkers Contributing Member

    Joined:
    Jun 19, 2002
    Messages:
    8,433
    Likes Received:
    480
    In the past that has been true. It still is generally but less so now.

    http://www.velaw.com/resources/TxSu...entallyChangesTexasNon-CompetePrinciples.aspx
     
  13. Mr. Clutch

    Mr. Clutch Contributing Member

    Joined:
    Nov 8, 2002
    Messages:
    46,550
    Likes Received:
    6,131
    They have you by the balls.
     
  14. ferrari77

    ferrari77 Contributing Member

    Joined:
    Jun 15, 2006
    Messages:
    9,447
    Likes Received:
    1,503
    Sports agencies, Entertainment/Talent agencies for sure.
     
  15. Pipe

    Pipe Contributing Member

    Joined:
    Mar 2, 2001
    Messages:
    1,300
    Likes Received:
    112
    Enforceability of noncompetes depends upon what state's law governs. In California, for example, noncompetes such as yours are not enforceable at all. In Texas, it depends.

    Without knowing more, certain aspects of your noncompete seem overbroad and probably not enforceable. Given the importance of your question, you should consult an attorney. At a minimum, you should consider disclosing your noncompete to your potential new employer who may have an attorney determine whether or not there is an issue.

    Standard legal disclaimer, this in an internet message board and YMMV.
     
  16. Pushkin

    Pushkin Member

    Joined:
    Jan 5, 2008
    Messages:
    411
    Likes Received:
    10
    Texas has radically changed its position on non-competes in the last few years. There was a time when you would expect a non-compete to be found unenforceable. Now, you should assume that they are enforceable in Texas.
     
  17. JuanValdez

    JuanValdez Contributing Member

    Joined:
    Feb 14, 1999
    Messages:
    34,137
    Likes Received:
    13,554
    Does Company B know you have a NCA? Would they pull the offer if they knew?

    I would consider taking the job and daring Company A to sue you. If you're a little fish and the damage you cause isn't significant, they won't bother (if they even find out). If you're a big fish... you'd be asking your lawyer instead of us. :p

    And, don't sign a non-compete with the next company.
     
  18. Felixthecat

    Felixthecat Contributing Member

    Joined:
    Aug 19, 2006
    Messages:
    2,804
    Likes Received:
    189
    I am still fighting my former employer in court...even a whole year after the contract expired.

    They used a non-compete to put me out of business and not because the contract was legal, but because I wasn't able to keep fighting in court financially and run a start up.

    I filed my counterclaim last month. :mad:
     
  19. Sajan

    Sajan Member

    Joined:
    Apr 18, 2009
    Messages:
    8,339
    Likes Received:
    5,789
    Well I work for Hospital A who is in process of implementing Company B's software over the new few years.

    I want to go work for Company A (a software company not based in texas) in the meantime and gain new experience. I am hoping one day to come back to Hospital A..or any other hospital for that matter in Houston that uses either company's software.
     
  20. Sajan

    Sajan Member

    Joined:
    Apr 18, 2009
    Messages:
    8,339
    Likes Received:
    5,789
    I forgot to add..I only got the full employee agreement a week before my start date and I had already put it in 2 weeks with my hospital. :-/
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now