How does a no competition contract work?

Nocturnal

Lifer
Jan 8, 2002
18,927
0
76
Like say I work for a certain company that has many competitors, and when I started working they say that I can't work for another company for say, six months after I'm done with this job. If I did go and work for another job (competitor) would I be sued?

We have an employee who actually stopped showing up to work here and kinda just jumped ship over to another competitor.

What kind of legal action can be taken? I know the HR probably knows more about this but I just wanted to find out if anyone here knew anything about this as well.

TIA.
 

Nocturnal

Lifer
Jan 8, 2002
18,927
0
76
Originally posted by: Krassus
Last time i checked, this was just a scare tactic and had no legal backing.

Are you sure or just assuming? Would there be laws from state to state?
 

AvesPKS

Diamond Member
Apr 21, 2000
4,729
0
0
Originally posted by: Krassus
Last time i checked, this was just a scare tactic and had no legal backing.

I guess this isn't exactly what you were talking about, but my aunt and uncle are CPA's. They worked for a big firm, before starting their own. My uncle had signed a contract saying that if he were to leave the company, he wouldn't take any clients with him; my aunt did not. They did take several big clients with them, and had to settle with the company.
 

Nocturnal

Lifer
Jan 8, 2002
18,927
0
76
Ok I guess that's what I'm asking about too. Breaking off and starting your own business. I don't plan on taking any clients with me. I just don't wanna be sued for leaving (if I do).
 

beer

Lifer
Jun 27, 2000
11,169
1
0
While I don't have an answer for you, I do agree with Krassus. Unless the person involved was a senior researcher and you could get him on major patent violations, I think you're SOL. If he/she was just a grunt or in an expendable position - as your original post seemed to indicate (senior management and researchers just don't 'quit coming' to work) - you'd have a tough time taking them to court, as you have no real evidence. I mean, they may have broken a legally binding contract clause, but what are you going to do about it? Sue them for a thousand dollars?