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-   -   Does a non-compete clause apply to primary location or location of employment? (https://www.askmehelpdesk.com/showthread.php?t=430219)

  • Jan 1, 2010, 09:33 AM
    joey7631
    Does a non-compete clause apply to primary location or location of employment?
    Does the non-compete apply to primary location of business, location of employment or any of the locations? There are 3 locations in my area, the clause states 10 miles and 2 years.
  • Jan 1, 2010, 09:36 AM
    ScottGem

    That seems crystal clear. You cannot be employed in competition with your current employer within a 10 mile radius of THEIR location and within 2 years of your termination of employment.
  • Jan 1, 2010, 09:40 AM
    joey7631

    THEY own all locations... does it apply to all of them? Because if it does I will have to learn a new profession
  • Jan 1, 2010, 09:44 AM
    ScottGem

    Would have to see the full text of the non compete clause. It might cover a 10 mile radius from any of their locations.

    On the other hand, non compete clauses are often unenforceable if they prevent you from getting employment.

    What is the nature of the company and your job?
  • Jan 1, 2010, 09:48 AM
    joey7631

    Book keeping/accounting... it doesn't state any addresses or any other restrictions other than 10 miles and 2 years.
  • Jan 1, 2010, 09:54 AM
    ScottGem
    The company provides bookkeeping/accounting services for other companies? And you perform such services for their clients?

    The only way a non-compete clause would apply here is if you tried to setup your own service within 10 miles of any of their locations. However, I don't believe you can be constrained from going to work for a company as a bookkeeper/accountant or from joining an existing firm that provides such services.

    You could, however, be sued if you try to take any of their clients from them.
  • Jan 1, 2010, 09:54 AM
    joey7631

    They are forceing me to work at 2 locations starting this year, these 2 locations are approximately 30 miles apart but only 12 from the other locations. This efectively kills a very large area if it is all locations.
  • Jan 1, 2010, 10:01 AM
    joey7631

    I do have clients that have told me if I ever leave my current employer to let them know where I go because they will follow... if I told them, would that be considered solisitation?
  • Jan 1, 2010, 10:16 AM
    ScottGem
    Quote:

    Originally Posted by joey7631 View Post
    i do have clients that have told me if i ever leave my current employer to let them know where i go because they will follow...... if i told them, would that be considered solisitation?

    Hmm an accountant that doesn't know how to spell solicitation.

    You cannot have any of their clients follow you for 2 years. That would be a clear violation of your non compete clause.

    I am pretty positive they cannot prevent you from going to work for any company as an accountant. I am less positive that they can prevent you from going to work for another accounting service within the 10 mile/2 year restriction. I am sure they can successfully sue you if any of their clients defect to you within the 2 year window.

    I don't see where you would have to change careers.
  • Jan 1, 2010, 10:32 AM
    Fr_Chuck

    You could not go to work for a current customer or for another firm that does similar business.

    You could have course be an accountant for a in-house company that does not do work for others.


    As for the 10 mile, if the contract does not say specificly, then it is a matter for court, if you go to work somewhere, and the other side sues you, then a court decides.
  • Jan 1, 2010, 10:36 AM
    joey7631

    Sorry, I'm a bean counter, not an english professor :)

    What about the 10 mile radius? The clause does not state a location. Is this what would be considered "grey area"?

    Does it matter if I quit or get fired?

    What if the employer has done unethical things and this is my reason for leaveing?
  • Jan 1, 2010, 10:38 AM
    ScottGem

    Yes, since no address was specified it would be up to a court to decide.

    It may matter if you were fired, but not if they were being unethical.
  • Jan 1, 2010, 10:52 AM
    joey7631

    Well... I say unethical, but forgery is actually illegal.
  • Jan 1, 2010, 01:05 PM
    ScottGem
    Then report it to the police. If they are guilty of a criminal act, they will be shut down and there will be nothing to compete with.

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