No Compete Clause

[toga22]

Do "No compete Clause's" actually hold up?
And what can really happen if you break one?

~toga

 

[TheProject]

Do "No compete Clause's" actually hold up?
And what can really happen if you break one?

~toga

In the technical world, it depends. I interviewed with a guy that wanted a 5 year, nationwide noncompete clause, and was told by others that there's no way a judge would enforce that.

Basically what I was told is that if it prevents you from making a living in your current city, there's no way it'll hold up in court. I've not even seen a non compete in several years.

Outside the IT world, I dunno.

 

[KEL]

Do "No compete Clause's" actually hold up?
no

And what can really happen if you break one?
you spend way too much money on a court case

 

[TheGame2001]

Nope

Have a bunch of buddies that work as salesmen for trucking magazines. They all had to sign no compete clauses but everytime a better offer comes up they move to a new job. No Compete clauses never hold up. Several of them went to court and it never held up.

 

[Citruscide]

Non-compete clauses... yes, they are legal... but they must be fair in terms of time and geography.

You coulnd't have a non-compete clause for 20 years and over the whole world... but could have one for 1 year within the city limits... or something like that.

C

 

[curling]

They hold up if they are clear to a certain radius say like 50 miles from downtown in a market. Inotherwords they are enforcable if they are reasonble in time(how long) and distance(how far) .

 

[toga22]

Thanks for the info everone....

I have worked with the same gym for about 8 years as a fitness instructor, it is not my main source of employment but I truly enjoy it. Well after a current falling out with my boss, I have decided that it may be a good idea to look elsewhere for employment in the area. My boss quickly has reminded me that I signed a 4-year 200 mile no compete clause.

I don't know if it was a threat on his part, or not. My feeling is that I really don't have any "trade secrets" or "vital company information" in my posession, so other than possibly a few members following me to a different gym, which I doubt would happen, I don't see the threat.


~toga

 

[curling]

200 miles seem a bit high to me and four years seems pretty long to for a gym job. Do you access to many clients? Also it wouldn't hurt for you to get some advice from an attorney on this. Also did he give you any special training or consideration for signing the non compete?

 

[mrbill]

Non-compete clauses... yes, they are legal... but they must be fair in terms of time and geography.

You coulnd't have a non-compete clause for 20 years and over the whole world... but could have one for 1 year within the city limits... or something like that.

C

what he just said

 

[toga22]

Do you access to many clients? Also did he give you any special training or consideration for signing the non compete?

Other than my classes I work individually with about 40 members.

And yes the gym was responsible for paying for 1/2 of the fees for certifications, and the classes or tests involved to receive them, and association membership fees. However some of the certifications were truly unneccesary and were only per this gyms requirements.

~toga

 

[curling]

Well that is close call. I think he might have some chance for a succesful judgement against you. But I still think it was unreasonable in time and scope(area). I would still visit with an attorney first. I am not lawyer btw but I am business man that use to use non competes on my salesman. I can also tell you from a boss perspective that we threaten more than we bite. Inotherwords, there is a good chance that he will never go after you. Lawyers are expensive.

 

[toga22]

Wow...they want you to sign for 5 classes?! It is crazy....I really don't see what the big threat is, myself, but what do I know...LOL.

How do you like working for Gold's Nic...the place I am considering to "relocate" to is a "Gold Gym" the same owner having 3 facilities so I would bounce between those 3 sites.

 

[Taps]

You need to get out of there, babe.

Tell your boss to kiss your ass, and be sure to steal some of the clients away when you go.

 

[big4life]

A 200 mile radius seems a bit too far, so I would think it would not hold up. They might ask for compensation for the fees they paid.

Good luck.

 

[gotmilk]

My boss quickly has reminded me that I signed a 4-year 200 mile no compete clause.

How many other good gyms are nearby? As long as you do not recruit away members, you should be fine. I have signed non-compete clauses before and broke both contracts. I went from working for a hospital to working for HealthSouth Rehab at a facility down the street. Worse case scenario is that you pay back any bonuses or loans you might of had (do you have any?)....

I wouldn't worry about it too much.

 

[manny78]

Thanks for the info everone....

I have worked with the same gym for about 8 years as a fitness instructor, it is not my main source of employment but I truly enjoy it. Well after a current falling out with my boss, I have decided that it may be a good idea to look elsewhere for employment in the area. My boss quickly has reminded me that I signed a 4-year 200 mile no compete clause.



~toga

this clause is exagerated and no judge would ever enforce such bullshit. We aren't talking about some scientific but a personal trainer. Tell your ex-employer that you'll break the contract anyway since it bs....

 

[Citruscide]

A 200 mile radius seems a bit too far, so I would think it would not hold up. They might ask for compensation for the fees they paid.

Good luck.

200 mile radius might not be too far. If you live in North Dakota and there are only 2 other competitors that the business you work for in that area... it could be enforceable... Four years, it might be a tad much... but remember, that doesn't necessiarly mean you can't WORK for someone else, it means you can't use any of the techniques you developed or used at your old job (such as marketing stratigies... and such)

I've written a few of these... if you have any questions on them, e-mail me with all the details of your work and environment... and I'll let you know.

C

 

[crab3535]

Relative to no compete agreements, in the Florida courts, one of the District Courts of Appeal ruled that if your employer/company that you signed the original no compete agreement with sells the business to another party then the original no compete contract is null and void absent the new owner getting the employee to sign a new one.

The principle in the case is that a no compete contract is particular to the original employee/employer relationship, that each party has a set of rights and expectations flowing from that agreement, and that those rights and expectations are not transferable with a change in the ownership of the business.

So, the question is, has the original employer that you signed the no compete agreement with sold or transfered the ownership of the business. If so, that might give you a way out.

In principle this seems to hold water, but you might have to get a lawyer to check to see what the controlling legal authority is in your state.

 

[PerfectRep]

These contract clauses really piss me off. I'm right out of college and would like to work for a smaller company to get some experience for about 6-9 months.
I would then like to move on to a better position. I have gotten two offers that I had to turn down because of the no competes clauses.

 

[FarBeyondDriven]

I signed one. The HR rep that was with me at the tiime said that it was really unenforceable (he worked for the company?). Thier main competition comes from ex-employees.
Especially in your situation I would think that the cost of taking you to court to even try and get a ruling would outway the results.