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Non-Compete Agreements


Ned Flanders

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Anyone have experience with these, and their statue of limitations?

Long story short, I worked for a company 5 years ago and had a non-compete agreement. When I left the company, some of the clients 'followed' me. They basically told me they were firing the current company (the one I worked for), and hiring me, as the work from the company could not match my work.

I am now EMPLOYED by one of these clients, I left the private sector.

Fine and dandy, now it's 5 years later, and I was wondering if the company I used to work for could possibly come after me 5 years later for 'stealing' clients. What is the statute on this? Anyone have any experience here?

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Anyone have experience with these, and their statue of limitations?

Long story short, I worked for a company 5 years ago and had a non-compete agreement. When I left the company, some of the clients 'followed' me. They basically told me they were firing the current company (the one I worked for), and hiring me, as the work from the company could not match my work.

I am now EMPLOYED by one of these clients, I left the private sector.

Fine and dandy, now it's 5 years later, and I was wondering if the company I used to work for could possibly come after me 5 years later for 'stealing' clients. What is the statute on this? Anyone have any experience here?

Tough question to answer without a LOT of details. Generally non-competes are enforceable but they have to be narrowly tailored. If you signed one, the length of time should be set out in that agreement. Generally you don't see more than 5 years though, because companies know if they overreach the whole thing could be thrown out as unenforceable. Plus, there's a big difference between your clients following you of their own volition, and you actively soliciting your former clients or using your former employer's resources (like customer lists).

If your former employer hasn't come after you yet, I wouldn't expect them to do it now. This kind of thing usually comes to a head in the first year or two.

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IMO, as a non lawyer, you should be fine.

Non-competes are complicated... The premise of the clause is that the company doesn't want you to get clients that you plan to "steal" away after you leave...

My good friend won a non-compete suit because the radius of the non-compete was larger than the area the coverage of the company (it was the radio industry) and it was the only job he's had since college...

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I believe it's "statute" vice statue. ;)

I remember looking into this once. I even talked to a lawyer. I believe the statute was two years for my particular situation, but that was a while back.

Doh! Typos!

I am more concerned with him going "OK, I know you NOW work for Widgets Inc, but WERE you stealing Widgets Inc from me 3 years ago?" He KNOWS I am working for an old client, but I'm afraid he's going to try and sue me for years past. And that would be A LOT of money.

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Non-competes are complicated... The premise of the clause is that the company doesn't want you to get clients that you plan to "steal" away after you leave...

My good friend won a non-compete suit because the radius of the non-compete was larger than the area the coverage of the company (it was the radio industry) and it was the only job he's had since college...

And that's my point many non-competes are overly broad purposefully to try and intimidate the employee. Excessive territory coverage and length of term are two areas where they try and exceed any reasonable accommodation. I have lived in two right to work states and they do not look favorably on restrictive non-competes and perhaps that has clouded my thinking on the matter.

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You didn't keep a copy of the agreement?:nono:

I have a copy of the agreement, I don't question the agreement.

My question is can he now say "I don't believe you didn't steal from me" and Sue me for what happened 4-5 years ago? Would he be able to actually do that?

My non-compete was for 1 year

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I have a copy of the agreement, I don't question the agreement.

My question is can he now say "I don't believe you didn't steal from me" and Sue me for what happened 4-5 years ago? Would he be able to actually do that?

My non-compete was for 1 year

The long response is absolutely he can sue you.

The short response is he probably wont.

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My non-compete was for 1 year

I'm going on a limb and say that you left the company, the company did not leave you...

Did you have your prior clients (at your old company) as soon as you [started your company or joined the new place]... If you took your new job and all the sudden had 3 clients that you dealt with 2 weeks prior, yeah, that'd be questionable... Are you confident that your former coworkers drove the client to you by their lack of performance? If so, then you shouldn't have any problems, especially if the client backs you up.

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The long response is absolutely he can sue you.

The short response is he probably wont.

And the most important response is that his former employer wouldn't win :)

In too many cases... non-compete clauses are not enforceable. You can throw whatever language in a contract you wish.... which employers always do... but it doesn't mean it's enforceable or lawful.

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I left the company. When I left, 4 Clients of mine followed. Not immediately, it took a few months to reel them back in. When they finally got ahold of me, they were overjoyed. I told them I could not work for them, and they told me they 'fired' the old company.

Another thing, is I signed a consulting non-compete contract, and I was actually an employee by DC's standards - 1 Source of income, 1 Job, etc. So to me, that agreement is null and void anyway.

My old boss is trying to get in touch with me, and I'm scared he's going to try make my life hell. Maybe I'm over-reacting, but the last thing I need right now is to be sued.

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I left the company. When I left, 4 Clients of mine followed. Not immediately, it took a few months to reel them back in. When they finally got ahold of me, they were overjoyed. I told them I could not work for them, and they told me they 'fired' the old company.

Another thing, is I signed a consulting non-compete contract, and I was actually an employee by DC's standards - 1 Source of income, 1 Job, etc. So to me, that agreement is null and void anyway.

My old boss is trying to get in touch with me, and I'm scared he's going to try make my life hell. Maybe I'm over-reacting, but the last thing I need right now is to be sued.

Which state has jurisdiction? Where is your prior company's headquarters?

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