Existing Non-Compete Clause and New Offer of Employment
If you are subject to a non-compete clause and are contemplating an oﬀer of employment, what should you do?
Review the non-compete clause: Carefully read the terms of your non-compete clause, including the scope, duration, and geographic restrictions. Understand the exact limitations and restrictions imposed by the agreement.
Analyze the new job oﬀer: Evaluate the job oﬀer in light of the non-compete clause. Consider the job responsibilities, the industry, and the company's position in the market relative to your former employer. Determine if the new role would actually violate the terms of the non-compete clause.
Consult an attorney: If you are unsure whether the new job oﬀer would breach the non-compete clause or if you have questions about the enforceability of the agreement, consult with an attorney who specializes in employment law. Remember that non-compete agreements are subject to diﬀerent laws and regulations depending on the jurisdiction, so it is essential to consult with a legal professional to understand whether your existing non-compete is even enforceable.
Communicate with your potential new employer: Be transparent with your potential new employer about the existence of the non-compete clause. Failure to disclose the non-compete could be the basis of a termination and chances are your new agreement has language that acknowledges you are not subject to an existing non-compete clause.
Explore the possibility of a negotiation: If there is a potential breach of the non-compete clause, consider discussing the situation with your former employer. They may be willing to waive the clause or come to a mutually acceptable compromise. You may also attempt to negotiate the inclusion of an indemnity clause from your new employer.
The attorneys at Outside Legal Counsel LLP are proﬁcient in helping clients understand and negotiating such clauses.
This is not legal advice and is attorney advertising.
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