employment contracts

yayorc · Mar 31, 2011

I signed a 1 year + 1 year employment contract with a non-compete back in August, with the second year extension at my company's discretion.

Since then I've been offered another job that I would like to take. I need to ask my company to agree not to pick up my option for another year in August.

Any suggestions on how best to approach them on this subject? If they force me to stay, I will be unhappy, and why would they want to keep me around?

Kyoung05 · Mar 31, 2011

Originally Posted by yayorc

I signed a 1 year + 1 year employment contract with a non-compete back in August, with the second year extension at my company's discretion.

Since then I've been offered another job that I would like to take. I need to ask my company to agree not to pick up my option for another year in August.

Any suggestions on how best to approach them on this subject? If they force me to stay, I will be unhappy, and why would they want to keep me around?

Um...you can't be FORCED to work against your will - indentured servitude and all that. That said, there probably is some penalty for early termination - probably best to see what that penalty is.

Piobaire · Mar 31, 2011

Originally Posted by Kyoung05

Um...you can't be FORCED to work against your will - indentured servitude and all that. That said, there probably is some penalty for early termination - probably best to see what that penalty is.

This. There's always an "out," it just might cost you in terms of year end bonus, payback of sign on bonus, part of any re-lo fees, etc. You did read your contract, and have an employment attorney read and advise you on it, prior to signing I hope?

ter1413 · Mar 31, 2011

Originally Posted by Piobaire

This. There's always an "out," it just might cost you in terms of year end bonus, payback of sign on bonus, part of any re-lo fees, etc. You did read your contract, and have an employment attorney read and advise you on it, prior to signing I hope?

that^^

Hombre Secreto · Mar 31, 2011

Originally Posted by Piobaire

This. There's always an "out," it just might cost you in terms of year end bonus, payback of sign on bonus, part of any re-lo fees, etc. You did read your contract, and have an employment attorney read and advise you on it, prior to signing I hope?

Don't think he would be asking if saw one...

dragon8 · Apr 1, 2011

Non-compete clauses are illegal in CA.

Kyoung05 · Apr 1, 2011

Originally Posted by dragon8

Non-compete clauses are illegal in CA.
This isn't so much about non-competes as it is about slavery. Besides, I don't think OP said he was from CA or another state that doesn't enforce non-competes, did he?

RedLantern · Apr 1, 2011

Are non-compete clauses really per se unenforcable in CA, or do they just have to be really limited and narrowly constructed to hold up?

bringusingoodale · Apr 1, 2011

Do what George Costanza did.

Kyoung05 · Apr 1, 2011

Originally Posted by RedLantern

Are non-compete clauses really per se unenforcable in CA, or do they just have to be really limited and narrowly constructed to hold up?

California. Business and Professions Code Â§ 16600 provides that "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void."

In Morris v. Harris, a California court held that the section invalidates agreements that seek to prevent former employees from accepting work from any of the former employer's clients. Further, according to Diodes, Inc. v. Franzen, a former employee may also solicit employees from his or her former employer if unlawful means or acts of unfair competition are not used.

RedLantern · Apr 1, 2011

What about principals? For example, say I have a solo law practice that I sell - is it ineffective to include as part of the sale a provision that I am not allowed to open a practice within the same practice areas(say criminal defense) in the same geographic area (say, town) for a limited amount of time(say 2 years)?

Gus · Apr 1, 2011

What state are you in. That makes a big difference.

tj100 · Apr 1, 2011

Originally Posted by RedLantern

What about principals? For example, say I have a solo law practice that I sell - is it ineffective to include as part of the sale a provision that I am not allowed to open a practice within the same practice areas(say criminal defense) in the same geographic area (say, town) for a limited amount of time(say 2 years)?

It's a little bit different for principals selling a business, because they have been (presumably) compensated in exchange for the agreement not to compete. Even in CA, I think you could structure it such that you couldn't invest in, or become a shareholder in, a competing entity for a period of time. This would effectively preclude you from opening a competing shop; but if you really wanted to practice, you could probably join another firm as a non-partner and be o.k.

munchausen · Apr 1, 2011

Well, legal business aside, I would imagine that OP would rather not burn a bridge by getting out on a technicality.

What kind of relationship do you have with your employers? I think in this case, as in most (obvs not all) cases, honesty is the best policy. Explain to them that you there is an offer you would like to take and ask them if they would be willing not to pick up your option. Thank them for the time they employed you. I doubt they want someone working for them who doesn't want to be there.

Gus · Apr 1, 2011

Originally Posted by yayorc

signed a 1 year + 1 year employment contract with a non-compete back in August, with the second year extension at my company's discretion.

Why the **** did you sign such a one sided agreement? Did they pay you a ton of money?

employment contracts

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