QUESTION

Are noncompete that includes customers enforceable

Asked on Apr 30th, 2015 on Employment Contracts - Wisconsin
More details to this question:
I'm working for a company that subcontracts to maintain inmate phones in wisconsin prisons. We work for the main contractor and inmates pay the bills through money paid to make phone calls. The main contractor pays a kickback to the state. The state pays nothing to the main contractor. I'm trying to get a job with the state but am concerned that I may have signed a noncompete that includes customers. My supervisor wasn't sure but thinks that I may have. I had to call him to let him know that the state HR representative would be calling him for a reference. He said the owner of the company got burned in the past and is sensitive about it.. I am in a relatively low paid non critical position basically changing phone parts. If I take this job with the state what can my employer do if they decide to fight it and what can I do. I need this job because it pays more and my current health care coverage has a 5,000 deductible. Can you please give me some advic
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1 ANSWER

Appellate Practice Attorney serving New York, NY
Noncompetes which provide that the employee will not take a job with one of his employer's customers can certainly be enforceable, but, although there are many relevant factors which are not included in your description (What will you be doing for the state?  For example, the provision is a lot more likely to be enforced if you will be maintaining the same phones and just cutting your former out of the loop by working directly for the state than if you would be doing something  entirely unrelated to your prior employment, like being a toll booth attendant.  How long does the non-compete run and over how wide a geographical area?  Will you be using anything in  your new job which could be considered a trade secret of your former employer?  Did you get the job with the state through your prior job?  etc., etc., etc.) it is unlikely that such a covenant would be enforced against an employee in your position.  However, even though I think that you would probably prevail in the end, there is nothing to stop your former employer from suing you for breach of the non-compete if he/she/it wants to give you a hard time and send a message to other employees who might be thinkiing of leaving. Your first step should be to read the actual agreement that you signed, and see if what you are proposing to do would violate it.  Frankly, I doubt that it prohibits you from taking a job with the state, which I think is unlikely to be considered a "customer" under the agreement.  Also, even if the agreement prohibits you from taking a job with the state, I doubt that it prevents you from taking all state jobs, just certain ones which compete with your former employer.
Answered on May 01st, 2015 at 7:44 AM

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