non-compete clause.URGENT..Lawyers pl. respond
This is a discussion on non-compete clause.URGENT..Lawyers pl. respond within the Other Labor Law Matters forum, part of the LABOR & EMPLOYMENT LAW category; I have receievd a offer from a company(A) to work as 'Sr. Business consultant' which is a technical job in ...
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|Feb 7th, 2009, 01:18 PM||#1|
non-compete clause.URGENT..Lawyers pl. respond
I have receievd a offer from a company(A) to work as 'Sr. Business consultant' which is a technical job in field of Computers (SAP). They want me to sign a agreement with a non-compete clause as given.
I have following question regarding it:
- Does this clause refer to solicitation of customers or it restricts me from being an employee also?
- Does this clause restrict me to be an employee or contractor of all the companies with whom company(A) has agreement with? The company might be be having hundreds of customers and I dont have the list of their customers.
-This seems a very restrictive clause. Is it enforcifble by NJ Law? If yes, will it be be enforcible in its entirety? If not entirely, what could be the possible modifications?
-For situation, If I sign the contract. After that company(A) makes me work for client (B). Does this clause restrict me not to be an employee or contract with client(B) for 12 months after leaving company(A)?
-Another situation, Company(A) signs a contcat with client(C), who in turn asks me to work with end-client(D). In this cases, am I restricted to work with both client(C) and end-client(D)?
-If both of the above answers is yes, then I am prohibited to join any of the company in the contract chain (B, C and D)? If so, how does N.J. law protect the employee in this type of cases? I am into a profession which falls under a specialty profession. There are much selected companies which require services of my profession. If I am prohibited to join so many companies, it will be very difficult to find employment for me. The list of prohibited companies will keep increasing as I work on more projects.
-I am working in California where non-compete clause are not enforcible. The agreement explicitly binds to follow the N.J. law. If I breach the agreement, which law will be applicable? California or N.J.?
-In case of breach of agreement, what can be the maximum penalty?
7. Does the title of my job makes this clause more restrictive? I am a Technical consultant by my actual job description. This clause mentions of 'accepting business'. Does my job title have any effect on the severity of the clause?
The agreement says that NJ law will be applicable in all cases
Unless I have obtained an express written waiver from an authorized officer of the Company, I agree thaemployed by the company and for a period of 12 months following the termination of my employment with the company for any reason, whether with or without cause, I will not, without the company's express written consent, directly or indirectly, whether as owner, partner,shareholder,director,officer,consultant,ag ent,employee,contactor,or otherwise: (1)solicit or accept similar business from, contract with or otherwise assist any customer, parnter or other company with which the company had busniess agreement within the twelve months preceding the solicitation or acceptance of such services (except in the course of your employment with the company),(2) cause or seek to have any customer, partner or other company which the company has a busniess agreement with, to end or otherwise detrimentally alter their busniess relationship with the company, or (3) engage in any competitive activities that could reasonably be considered harmful to the Company.
|Feb 8th, 2009, 11:28 AM||#2|
Re: non-compete clause.URGENT..Lawyers pl. respond
That pretty much stops you from doing anything...contacting, working etc with any competitor that you had any contact with or even knowledge of.
That may be enforceable but not if it effectively stops you from working at all. Such agreements are easy to challenge as being over broad.
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