Question about a no compete contract my husband signed

Question

My husband worked for a consulting group for 4 months when he was offered a job by another consulting group for $10,000 more a year so he excepted. The company where he was leaving called him on the phone a few days after he put in his notice and said they had found out where he was going to work and that he had signed a no compete and fired him over the phone. Now we have received a letter from their lawyers with a copy of the no compete contract and in the contract it states that he will not work for a similar company for 2 years after he leaves in our state.Can they really enforce that??? What is supposed to do for 2 years?? change fields all together?? any advice or suggestions,knowledge,ETC. would be helpful!

Answer 1

Unless he wants to be sued, his most logical option is to work out-of-state for the 2 years. If the company that he now works for has an out-of-state office, perhaps he could be transferred. Or, he may have to work in a different field for 2 years if you cannot move. Given the short length of time he was in the old job, there is a possibility the contract could be negotiated down to a shorter time, but noncompete contracts are fairly straightforward and generally set out all the restrictions and limitations involved.

Answer 2

With many groups of professionals, a non-compete agreement is the norm and not the exception. It is part of the contract signed when being hired and is very enforceable. Most contain a period of time and/or a certain amount of miles from the original company. Some areas have had the courts rule against the length of time and have lowered it to 18 months. Sorry, but he is stuck with the agreement.

Answer 3

Can we have the name of his consulting group?



A consulting group is usually composed of professionals in their field. I would expect any such professional to recognize that an agreement they signed might be enforced. The fact this group hires people without that simple understanding suggests a very low level of expertise.



In truth, though, courts have been all over the map on non-compete clauses. They are normally enforceable, but in some cases, courts will find that a particular clause is too strict and will refuse to enforce it.



Next time, though, hubby needs to read what he signs, and if necessary consult a lawyer. This time, he could very well be sued for violating the agreement.

Answer 4

Whether its enforceable depends on what state you are in. Different states have different statutes and case law concerning non-compete clauses.



In California, for instance, agreements that restrict future employment are almost always unenforceable.



In some states, they are enforceable if "reasonable" in geographic scope and duration. "Anywhere in the state" may be reasonable if you are talking about Rhode Island, but not Texas.



"Similar company" is also open to interpretation.



You should consult a lawyer in your area. As others have said, there are too many additional facts that must be ascertained before anyone can give anything near a correct answer to whether your husband's former company can enforce that clause.

Answer 5

He is not necessarily bound by the agreement. It may not be enforceable. Each state has its own laws about this, and the application of those laws tends to be complicated. Sorry, but he needs to see a employment lawyer in your local community right away. This problem can't be diagnosed and solved in YA. In the context we have here, I can't give you legal advice and neither can anyone else. The lawyer will need to read the contract, talk with your husband about the circumstances, and be familiar with the laws of your particular state.

Answer 6

Yes, it's a contract, they can absoutely enforce it. He needs to see if there is an employment timeline though. A lot of no compete agreements are in regards to x-amount of years on the job. He's only 4 months in, it may be void.... He'll need to talk to an attorney to see your states laws regarding that. Not "their" attorney. His own.

Answer 7

Contract law is very clear, a contract is a bond when you sign it you except all its contents, if you breach or break it you become liable for any action taken by the other party. So in a word yes they can enforce it.

Answer 8

Yes a non compete claus is enforceable. Some people do have success fighting them because they are found in court to be too excessive.

Answer 9

i have seen this happen in the fishing industry to a fish buyer he had to wait for six years if you sign it they can get a juge to up hold it this fish buyer had to have a freind do his buisness for him in his freinds name for the six years