QUESTION
non compete clause in employment contract
Asked on Sep 10th, 2013 on Employment Contracts - California
More details to this question:
After quiting STEPZ(former employer), i started my own dance company.Since the beginning of moth , STEPZ started sending me warning emails and yesterday STEPZ attorney sent a email with the allegations that I cannot open my dance related business as per the contract says " 1)Cannot offer dance or fitness product or service that is for sale in any geographical area where STEPZ was operating at the time of termination of contract for a period of 3 years after termination. STEPZ and instructor may negotiate a suitable "fee" payable to STEPZ in lieu of removing the no-compete clause outlined" --- this does not specify the radii of the geographical area 2) STEPZ puts an allegation on me of contacting its customers, This is wrong, I only contacted my friends and the contacts that I gathered within the 15 years of my stay in US 3) As per Contract it says "All knowledge gathered while training and instructing in STEPZ is STEPZ property" - There was no knowledge or training offered to me
1 ANSWER
Accidents Attorney serving Novato, CA
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Law Office of Codi M. Dada Attorney at Law
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Non compete clauses are enforceable as long as they are reasonable in time and geographic location and do not unnecessarily hinder commerce and do not violate public policy. The terms you have stated, three years would most likely be found reasonable by a court of law. However, the terms regarding not being able to compete in ANY geographic location sounds dubious. I would need to read the contract to determine if the terms of the agreement would hold up in court. Is this what the agreement actually says "any where"? I invite you to contact me.
The bottom line is: if the terms of the agreement are found reasonable you will loose in court. The ramifications of loosing in a suit like this can be very expensive. They could make you return all profits you made from your business and possibly charge you alot of money if they show you damaged there business.
On the other hand if the terms of the agreement are NOT reasonable, the other company will not be able to enforce that term against you. Instead the court will find a reasonable term to replace instead. Usually geographic limitations in such type of business are upheld in court if the are specific and certain. This also depends on the industry and the specific circumstances of the particular case.
You should consult an attorney. This could get real bad real quick. You should have an attorney help you in this matter.
If you like, contact me with more detail so I can give you a more specific answer.
dadalaw@comcast.net
Codi M. Dada, Attorney at Law
Novato Ca. 94945
415-827-1425
Answered on Sep 10th, 2013 at 9:14 PM