Non-Compete Agreements

[RaRay]

Thank you! This has been wonderful information. Does anyone suggest I speak to my employer? Although she is all business, I would only be compleating orders for already established clients through my new side job. I do not plan or would not steal any clients and the little mortgage companies basically no longer exist where I am at. At least I do not work for them only major banks.

 

[Smokey Bear]

Talk to a lawyer first.

 

[Scott Lanz]

If you signed an agreement, you should live to it.

The most important, and valuable, asset I have is my signature.

My non-compete was three years over the entire state. I will not sign another one for the rest of my career.

 

[chad hampton]

In most states, non-competes deal with indusrty "secrets" or clients. If you try to take his clients, then you could have a problem.

But talk to a lawyer that deal in non-competes. It's a shame that business has that kind of stranglehold on the american worker. I doubt any judge with a brain in his head woudl keep you from working in your field unless it is proven that you "stole" their clients, software, etc. It isn't as simple as them saying 'judge, here's the non-compete, now hold him to it". Your boss would have to show damages in court.

This is america, you have a right to earn a living. In florida, they generally don't hold up as far as appraisers are concerned.

I don't blame you for signing it, in this country, the worker has little choice but to take it from the bossman. They are there to scare you, nothing more.

 

[Metamorphic]

If you signed an agreement, you should live to it.

The most important, and valuable, asset I have is my signature.

My non-compete was three years over the entire state. I will not sign another one for the rest of my career.

Sounds like his work is breaching their side of the agreement by not keeping him busy.

 

[Kevin A. Spellman]

Give proper notice in writing. USPAP could protect you under confidently, how will your x-employer know what you are doing. Let the office chase you. When you signed the contract was it part of the employment consideration? If it is a mandatory contract for employment it could fail in court. A contract cannot be one sided. The spirit of a contract must be evident and is not just to protect the income of the employer. If you were giving a bonus to sign the contract then it may have validity. Give proper notice and enrich yourself with the other opportunity.

 

[David Dietz]

Are your taxes filed with a W-2 or a 1099?

 

[Scott Lanz]

RaRay,

You have come to a crossroads in your life. I sense you are feeling like you should not fight the non-compete clause and are looking for help in justifying what you want to do, instead of what you should do, or can do legally.

Your decision has three potential directions

1. Action: You can fight Cost: your signature and your word are worthless
2. Action: You can live to the contract Cost: potentially lose two years of your career
3. Action: Renegotiation of the contract Cost: Not sure, maybe none

I made the choice to honor my non-compete clause for 3 years (not one day longer). My rough estimate of that decision was around $150,000 lost in income over that period. It was the worst business decision I made and a very expensive lesson. I will never again sign anything that restricts my rights to work and I will always live to every handshake deal, verbal agreement and document I sign.

The company didn't restrict your right to work, you did.

In a world of eroding personal responsibility I hope you become part of the solution instead of the problem. Good luck.

 

[Doug Wegener]

Lawyer

I am in a non-compete contract w/my firm I currently work for as an appraiser in a satellite office. I basically work part time and out of my area with no additional perks due to lack of marketing presence my firm has in my city. My non-compete only expires once I have left the firm, I can then go work as an appraiser in my area after and only after 2 years have passed. The firm has been great to me, however, the owner has been known to sue appraisers that have left. There is no medical, 401K nor bonuses of any kind especially in respects to our 24 hour mandatory turn around for our appraisals - and if late, results in a % cut for us. I am currently in a situation where extra money is really needed. I have been offered a job as an independant contractor doing appraisals right in my city for a local company whose owner expressed to me they are in tremendous need for an appraiser in my area and has an additional 5 orders just last week they cannot even get to. I told them I was in a non-compete and of course they thought that was basically communist. I feel so stuck and yes, my company accepts AMC work for throat cut prices and is opening an AMC! Fortunately, I am in an area that is busy and homes are moving and of course I want to utilize my trade for success. When I have spoken to my boss about lack of work, knowing its out there, and about the decreased fees I basically get told to be thankful for what I have. This is nuts! Is this wrong of me to want to move on and better myself and not be controlled? I don't know what I was thiniking when I signed this thing. I was a trainee and it wasn't easy getting a sponsor, but just plain stupid I guess for signing this thing. :new_smile-l: - Any suggestions?

Consult a lawyer. In my opinion, a two year non-compete agreement is overlybroad and immoral as well as possibly not being lawful. It depends on the law and case law in your state.

I would consult with an attorney to get an opinion. You might even consult with a paralegal who knows how to research the law. Or you could research the law yourself if you know how to do it.

Without knowing what your legal rights are in your state, it would be hard for anyone to advise you.

 

[Smokey Bear]

1. Action: You can fight Cost: your signature and your word are worthless

This is really judgmental. I have a law degree. Most people aren't trained to read contracts and don't understand what they're signing. Those same people often can't afford an attorney to review and explain the contract to them. Someone just starting out in this business might not understand the implications of what they are signing, especially if it wasn't negotiated, but just presented to them as a condition of employment.

If a contract is unenforceable by law, why should someone be held to it just to "protect their good name"? Many contracts are designed to take advantage of people that don't completely understand them, and that's why the law is there to decide if the contract is reasonable.

This contract appears to be unconscionable. It doesn't provide for full time employment, but requires the person to either relocate or give up their chosen profession for 2 years if they leave the company or seek other work. This just isn't reasonable, especially if work has dropped off.

Sometimes people make mistakes, based on not knowing what's really going on. Correcting that mistake is not a moral failure, and doesn't make their name or signature worthless. It makes them smart enough to fix things and move on.