Wednesday, April 1st, 2009: Non-Compete Agreements

“CloserQ, I just got laid-off and my employer is saying my non-compete is still valid. This is seems ridiculous but I don’t want to have them go after a new company and lose my job again. What do you recommend?” anonymous

I am not an attorney but I have a strong recommendation, Go get a job at a company where you will be successful. As usual, I do have some qualifying questions before I give a more detailed response. Are you a senior executive? How many majors accounts have you signed? How many major accounts do you manage? Does your non-compete state specific companies?

In America everyone has a right to a job and gainful employment. They are laying you off and personally, in this economy, I would apply to your previous employer’s competitors. My personal experience with non-competes is that they are tools for one competing company to hassle another. Companies usually try to enforce non-competes when multiple people leave for a competitor, a specific employee is aggressively recruiting their employees, they suspect a former employee has stolen confidential information, or if a senior manager leaves. Even when I have seen them enforced it was that the sales person couldn’t call on specific accounts for set amount of time, usually six or twelve months, versus getting fired at the new company.

At the same time you need to be an ethical sales person, you can’t steal client lists, product info, etc.

I am not an attorney, so I asked an attorney friend of mine her advice. Her advice was, minus the legalese, was if you are really concerned, meet with an employment attorney in the state of your contract. If your attorney is in agreement the non-compete is not valid, have your attorney send your previous employer a nastigram.

In this economy, I would aggressively target all companies where you can bring industry experience and knowledge. Because of the number of applicants these days, employers are looking for very specific experience and I would contact the companies in your industry. Earlier this year I made job search recommendations, http://closerq.blogspot.com/2009_01_18_archive.html.

‘Good Job Hunting’. Reader Feedback, please click the comments below to give ‘Anonymous' additional recommendations and I want your feedback on my response. Shaun Priest aka CloserQ

Comments

Jerry Kennedy said…
Shaun:

Thanks for posting this. I think it's an important issue for a lot of sales people, especially with all the lay-offs happening. I agree wholeheartedly with your advice to contact an attorney who specializes in labor issues in your state.

Here in California, these types of agreements are considered illegal and any attempt to enforce them can be considered harrasment on the part of the employer. It's best to know your rights and not allow your former employer to intimidate you. You have the right to earn a living in your chesen industry, and they cannot prevent your doing so.

That said, don't leave your ethics behind, either. There is plenty of business to be had without specifically targeting the customers of your former employer. Demonstrate your real worth to your new employer by having a goal of bringing in two brand new customers for every one of your old customers and you should have no problems.

Jerry Kennedy
Co-Host
Sales Management 2.0 Podcast
Anonymous said…
Spot on! Nice post. - RF