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    torner1973's Avatar
    torner1973 Posts: 1, Reputation: 1
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    #1

    Oct 5, 2008, 06:53 PM
    Is no compete clause valid?
    I am currently working for a vending company in Lousiville, KY. I think they are in bad financial trouble. I have only worked there for 5 months. In this brief time my company gas card has been refused due to lack of payment 3 times. I had to pay for the gas with my personal credit card, also we are always running out of product. The owner has yet to put in any of his 401k match. My wife has since started her own vending company. Everything is in her name. Since my current employers financials are in serious question, can I go to work for my wife and not be held under my current employers no-compete clause?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Oct 6, 2008, 06:26 AM
    Hello torner:

    Well, it really depends on WHAT your agreement says. Some have been found to be illegal, because they force the person to find a new line of work. Others, are legal, however.

    So, if your non compete is open ended, then I don't think it's going to be held up. But, like I said, the devil is in the details.

    excon
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Oct 6, 2008, 06:45 AM

    What does the clause say exactly?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Oct 6, 2008, 10:11 AM

    Yes, they are legal, and yes they are often upheld in court.

    So can yours be? You will have to get an attorney to look at it, and be willing to fight it in court.

    Of course as long as you don't steal any of their customers most likely they won't say anything, but it is hard to say.

    Just your wife having a competeing company may be an issue, I doubt that for example IBM would want a husband working for them if the wife was with Dell for example.

    Afraid they would be giving trade secrets out.

    And in some states of course if this is merely private owned ( not incorporated) and it is a community property state, you are part owner and already compete.

    So you nedd to have an attorney review your contract and give you advice to where you stand
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