Will you be prosecuted for violating your non-competition rules? Maybe it depends on what you`re doing. Below, you will find a miniature sketch of legal actions in connection with alleged violations of the non-compete clause. Employers should consider the applicability of a non-competition agreement and consider the extent to which government laws make it applicable. We will now talk about the most pessimistic scenario: what happens if the former employer wins the complaint for violation of the non-competition agreement? Non-competitions generally contain a clause indicating how long the outgoing employee must wait before finding a new job under the same field. The standard period is two to five years, depending on the type of work done by the employee in question. We respond to letters of omission on a FLAT FEE basis. In fact, we offer a flat fee service to do everything in our power to avoid prosecution. Non-competition agreements are signed at the beginning of a business relationship between two parties (usually between the employer and the worker). This contract is used to protect the employer from certain actions of the worker in the event of a separation from the company, assuming that the former employee could work for a competitor or create a business that could compete with the company.
Keywords: non-competition ban, violation of the Wage and Hour Law, Worker Protection Laws, Workers` Rights. A non-competition agreement, also known as a “restrictive agreement,” is a clause in which a party, usually a worker, enters into a contract that undertakes not to enter or compete in a similar occupation or trade with another party, usually the employer. Such agreements also prohibit workers from disclosing business activities and trade secrets and from using confidential information to gain a competitive advantage. For more information on this article, drafting competition agreements or charging a competition restriction, contact lawyer Jason Shinn. We often get calls from employers warned that they want to hire a new employee (by a competitor of course) who is the best since the bread cut, but it has this non-compete agreement. The first question is usually: “It`s unworkable, isn`t it?” The seemingly pointless lawyer`s answer, “it depends,” is only the starting point. The most practical problem is that your business is being sued if you hire that person and you need to spend valuable time and money determining whether the non-compete clause is applicable or not. A watertight and detailed non-compete agreement protects your business from possible civil lawsuits by unhappy former employees. The best way to do this is to consult with a qualified labour lawyer to deal with these agreements to ensure that they are adequate and exist in court.
A non-competition agreement should deal with how the worker is compensated for agreeing to the employer`s terms. This can be in the form of a signing bonus, a promotion or a particular benefit. However, a promise to maintain employment should not be considered a quid pro quo. In Michigan, a non-compete clause may be imposed if the non-compete clause is an “appropriate competitive commercial interest.” Since 2001, Jason has been working with companies and individuals to address competition bans. This experience includes the representation of companies pursuing violations of their post-employment restrictions and of persons prosecuted for alleged violations of their non-competition prohibitions.