1. The official Sherdog Store is back! Check it out! » Discuss it here! »

Any Business lawyers in here? Non compete clause

Discussion in 'Mayberry Lounge' started by bobby59, Feb 13, 2020.

  1. bobby59 Purple Belt

    Joined:
    Sep 1, 2006
    Messages:
    1,587
    Likes Received:
    0
    Location:
    NYC
    Anyone know how to get out an NDA Non compete?

    I currently work for a company that I want to move away from. I would like to start my own business. I have had my clients for years and wild like to take them with me.

    The company was bought over a year ago is going into a new direction, trying to be a platform or software business. The clients I have do not want to switch over. The atmosphere is taking a toxic turn and clients expectations are getting harder and harder to meet.

    There are several issues that the company is presenting me and my clients with.

    1. they are running out of cash flow because they have hired people to work on the platform. In doing so they needed to let go of people which work on my clients work which has been hindering the turnaround time and quality of work. Not to mention have the few remaining people work many hrs past their shift in order to get the work done.
    2. The pulled me out of operations in our regular non platform work, and put me in charge of running ‘operations’ so to speak, on the new platform. This has caused a. Problem because it leaves me out of our regular non platform work.
    3. The platform is soo far from being complete and is clunky at best. The owner of the company, is making a push to put all clients on it. Since the platform is not finished and clunky it takes even more people to finish a job and usually takes a longer time. Quality does not seem to be as good either.
    4. I was in operations and sales, however I have not been able to sell since we do not have enough people to handle the work now.
    5. My clients do not want to be on the platform. The owner of the company expressed he wanted to do this behind the scene anyway. “How would the client know.” He has backed off that statement.
    6. Our relationship has been strained since he realizes my clients do not want to use that particular service.
    7. I felt rushed into signing the NDA. They were on me for four days to sign it which I reluctantly did. They tried to sue former colleagues of mine over the summer. They presented false NDA documents to the court. My colleagues never signed one.
    8. I work in New York State but would open my business in NJ. I am not sure that would help my case.
    9. The denied me overtime pay recently on a double I pulled on a holiday. They told me they never met anyone who makes my salary that get paid OT. They never mentioned the new rule in place.
    10. If a client decides to leave due to lack of quality of work, would they be free to come to my company or do I have to wait a year?
    11. Are there any ways out of this? I can post the non compete if necessary.
     
  2. Jake the Muss Black Belt

    Joined:
    Jan 14, 2005
    Messages:
    6,994
    Likes Received:
    1,133
    Try lawtrades.

    You can copy and paste your story, and somebody should connect you with the appropriate professional or at least give you an idea of the direction you should take this.
     
  3. bobby59 Purple Belt

    Joined:
    Sep 1, 2006
    Messages:
    1,587
    Likes Received:
    0
    Location:
    NYC
    Thank you, will check it out.
     
  4. davidlemonparty Black Belt

    Joined:
    Jan 9, 2017
    Messages:
    7,340
    Likes Received:
    3,393
    Location:
    Perth, Australia
  5. Negator402 Yellow Card Banned

    Joined:
    Feb 17, 2018
    Messages:
    2,939
    Likes Received:
    0
    I want to help you. I am just exhausted. I am an NY attorney, though. A few thoughts:

    -Employee non-competes are easier to get out of than partner/owner non-competes.

    -Non-solicitation might also be included.

    -Generally, the three tests of reasonableness are scope (what work is banned), time (for how long) and geography (50 miles v 5 miles).

    -In professional services (law, medicine, accounting, dentists, etc), clients' choice is paramount, so people take their book of business all the time. Outside of that, if the agreement covers it, taking their business would be harder.
     
  6. Fedorgasm Gold Belt

    Joined:
    Sep 18, 2008
    Messages:
    18,913
    Likes Received:
    10,968
    What does the contract say? You can't compete for a year? And what is the distance? 20 miles?

    If so then operate just outside of those thresholds.

    Or wait for your company to go under.

    Or offer to buy your way out of the contract, would need investors that believe in your company enough to give you the money to pull this off
     
  7. HARRISON_3 Steel Belt

    Joined:
    Jul 12, 2007
    Messages:
    28,929
    Likes Received:
    18,711
    Location:
    Within Cells Interlinked
    [​IMG]
     
  8. plataoplombo Purple Belt

    Joined:
    Aug 23, 2017
    Messages:
    1,861
    Likes Received:
    824
    If you start your own company will your clients snitch on you?
     
  9. Negator402 Yellow Card Banned

    Joined:
    Feb 17, 2018
    Messages:
    2,939
    Likes Received:
    0
    You can pm me, and I'll gladly chat. Obviously no attorney client relationship formed
     
  10. therealdope Titanium Belt

    Joined:
    Mar 2, 2008
    Messages:
    39,326
    Likes Received:
    2,072
    Location:
    US, Canada
    Move to Cali, they don't allow non-competes.

    In practice, they cannot prevent you from working. At the same time, you're not permitted to take customer lists, price lists, or marketing plans with you.
     
  11. greygoose Brown Belt

    Joined:
    Feb 3, 2006
    Messages:
    4,674
    Likes Received:
    139
    Location:
    Tennessee :(
    NC's are generally just used as a deterrent and I've only seen 1 case followed through with a lawsuit. In this case, I'd just advise your clients that you are moving on (hint hint) and branching out.
     
  12. MikeMcMann Banned Banned

    Joined:
    Aug 15, 2015
    Messages:
    26,715
    Likes Received:
    0
    Not a lawyer but have lots of experience here.

    First off, yes get a lawyer to read it.

    Know that very few non competes are enforced in this area unless you are relentlessly stealing client after client. Especially if the company does not have the cash for a client they will lose anyway. So you can just leave and have the clients 'find' you and take your chances.

    Or if you want to, explain to them they will lose the clients due to focus change and tell them you maintain them and propose a revenue split for a period of time. If you have a strong relationship with the client you can consider having them tell them they are leaving and why which should make them more open to any revenue retention.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.