Non Competes
Hi all,
I was wondering what your thoughts are with non-competes and linkedin. I don't know the law and I knows it varies by state but if I had a non compete at a former employer and update my company on my profile and the customers that I worked with at the previous company calls me. Would this be a violation of the non compete?
Feel free to put your 2 cents in and feel free to connect.
Answers (8)
Max H
Strategy and Analysis in the Federal Government
Best Answers in: Government Policy (2), Government Contracts (1), Criminal Law (1), Property Law (1), Public Relations (1), Labor Relations (1), Retirement and Estate Planning (1)
If the company calls you, you tell them that you have a non-compete. You tell them when it expires. And you tell them that you would love to talk to them at that time (assuming you would love to talk to them).
You are not helping them compete with your noncompete company, and you are not talking trade secrets or even trade generalities, so you are not in violation of your noncompete.
That said, I know you are smart and have a copy of your agreement. Read it again and know your rights and your wrongs.
Ralph B
President at FLARB LLC and Owner, FLARB LLC
Best Answers in: Mentoring (1), Mergers and Acquisitions (1), Internet Marketing (1), Distribution (1), Business Plans (1), Blogging (1), Information Security (1), Software Development (1), Wireless (1)
In many states Non Competes are not enforceable.
Mark L
Product Sales Manager
Best Answers in: Public Relations (1), Quality Management and Standards (1), Professional Networking (1)
Hello Kevin and everyone,
I agree with Max and Ralph on this one. I know of 3 companies that are in the same state and they use “Non Competes” as a scare tat-tic to keep people from floating back and forth. It does not seem to work very well since some of the people there still move between the 3 companies. I do not like Non Competes since they imply that I am always going to look to the competition for future work. I personally do not do that do that for one.
Here is why I am responding find a lawyer and show them the Non Compete and see if it will hold up. If you are considering a change in job responsibilities with the new company that may make your Non Compete agreement no longer valid anyway.
My wife went through this and in her case even though they are not legal in the state we were living in the legal issue could still cost us money to defend her against her old company. We moved and she took almost a year off and when she went to work we could have taken a hard ship against the Non Compete but she called the owner of her old company and let him know what was going to happen. I am not sure if he could do anything in TX or not. But he was ok with it.
I would find a good lawyer that you like and trust and talk with them about it. With all the stuff I am doing I play golf with my lawyer once a month. I am a very bad golfer and he is great golfer! I pay for the both our golf fees he gives me great golf tips and I have 4 hours to ask him legal questions.
Good luck!
Mark Lange
David M
Managing Director of Sirleaf Pte Ltd and legal consultant. dmar9147@yahoo.com
Best Answers in: Using LinkedIn (18), Property Law (15), Criminal Law (11), Employment and Labor Law (11), Government Policy (9), Contracts (7), Intellectual Property (7), Education and Schools (6), Corporate Law (6), Compensation and Benefits (5), Business Development (5), Financial Regulation (4), Internationalization and Localization (4), Finance and Securities Law (4), Organizational Development (4), Blogging (4), Customer Service (3), Car and Train Travel (3), Economics (3), Personnel Policies (3), International Law (3), Treaties, Agreements and Organizations (3), Writing and Editing (3), Corporate Governance (3), Distribution (3), Communication and Public Speaking (3), Ethics (3), Professional Networking (3), Small Business (3), Starting Up (3), Information Security (3), Web Development (3), Occupational Training (2), Event Marketing and Promotions (2), Tax Law (2), Graphic Design (2), Business Analytics (2), Labor Relations (2), Equity Markets (2), Non-profit Management (2), Personal Investing (2), Professional Books and Resources (2), Career Management (2), Business Plans (2), Energy and Development (2), E-Commerce (2), Facilities Management (1), Purchasing (1), Freelancing and Contracting (1), Job Search (1), Mentoring (1), Budgeting (1), Public Funding (1), Venture Capital and Private Equity (1), Risk Management (1), Staffing and Recruiting (1), Exporting/Importing (1), Events Marketing (1), Internet Marketing (1), Sales Techniques (1), Search Marketing (1), Change Management (1), Planning (1), Bond Markets (1), Currency Markets (1), Futures Markets (1), Philanthropy (1), Packaging and Labeling (1), Project Management (1), Personal Real Estate (1), Wealth Management (1), Engineering (1), Product Design (1), Biotech (1), Enterprise Software (1), Computers and Software (1), Computer Networking (1), Information Storage (1)
I begin with the caveat that the full answer will depend on the wording of any agreement you signed with your last employer, and the law which applies to determine its validity. That said, I offer the general view that there is a distinction between activity and passivity. If the agreement is legally binding, the terms will forbid the active soliciting of clients or customers to follow you. In other words, if clients or customers by accident or their own research, discover where you now work and then follow you, this is not usually considered a breach. Posting a resume or details of past employment on LinkedIn does represent a slightly grey area. But, let us say you remain an employee and derive no personal benefit if clients or customers follow you. Let us further speculate that one of the functions of this site is to give you the chance to find new employment. Prima facie you have a good reason for posting your resume here not connected with inducing clients or customers to follow you. This might be different if you joined a site whose primary function was to allow clients or customers to track down valued service providers. That might be considered more active solicitation. With a resume on LinkedIn, it is serendipity whether anyone who knows you finds you here.
Non-competes are part of my career as well. Every financial advisor has to sign one. Mine is for 3 years. The company that you signed with has the option to press charges if your competing (I know another financial advisor going through litigation right now).
Is your title the exact same as it was at the former firm?
I think you might be able to get by if you altered your title or disguised your title. Then feel free to engage in conversation and when the person asks you what you do, you disclose.
Legalities. Legalities. It's all about who asks for the business. If the client approaches you, all is fair in love in war.
P.S. I'm not an attorney :)
Leigh D
Virtual Secretary and Transcriber
Best Answers in: Staffing and Recruiting (1), Public Relations (1), Web Development (1)
I discovered a twist on non-compete agreements in my transcription business.
I provide services to my own clients and I "sub" my services to other transcription and court reporting companies. I don't have any intention of building my business by marketing to other peoples' clients. I think it's smarmy. I don't know what I would do if I were contacted directly. That is a different issue and I guess it would depend on the circumstances.
What I have encountered is situations where more than one of the people I sub for work for the same client. This often happens in large organizations with many divisions or arms and many locations. And, too, in my legal work, there are many transcriptionists who serve the various courts. Although I do not to pursue or even contact a customer of someone I am working for, I am not willing to forgoe work from another contractor who has contracted work from that customer independantly of the other.
I find that I am less inclined to sign non-compete agreements, although I will if they are carefully worded to protect that contractor's client list and they don't cross the line into unfair restraint of trade -- mine.
I also have the impression that in most cases they are not enforcable. Still, but I won't sign anything that I can't agree to. That's just the way it is.
This doesn't really address your question -- what do you do if you are contacted. I don't know what I would do. I have a very high regard for the professionals that I work for and am proud of my associations with them. As a consequence, I would be very suspect of someone using their services contacting me independently. I am not interested in growing a business because I'm the lowest bidder!
I imagine that those issues are somewhat different in your industry.
Very interesting issue. It will be interesting to see how others weigh in.
This isn't the place to ask or answer this question. The answer is so dependent on the language in the agreement, ALL the facts surrounding the situation, and the applicable law. If there is litigation, your question and the answers are public and would end up being reviewed by the opposing counsel to see if they could be twisted around and used against you.
Go talk to a local lawyer. It should take more than an hour of legal fees and you will get actionable advice you can rely on.
And don't believe any blanket statements that "Non-Competes" are unenforceable. Even in California, where certain types of them are supposedly "not enforceable"... they still are enforceable... depending on what's inside of them and the circumstances.
Again, go get a real lawyer, a local one, and get some real advice.
Cassandra "Cassie" W
Rental Division Manager at Florida Home Realty
Best Answers in: Using LinkedIn (5), Event Marketing and Promotions (1), Government Services (1), Compensation and Benefits (1), Labor Relations (1), Manufacturing (1), Professional Networking (1)
In my job..my customers are my life line....it is because of that and my experience that makes me a sought after sales person.....and i am able to command my price...Good luck
Realtor Naples Cassie