Candidate Blog

Understanding Non-Compete Agreements

Written by Tony Bishop | Mar 17, 2020 5:00:00 PM

Non-compete agreements create a lot of anxiety for candidates seeking a new position. A basic understanding of non-competes can give you the confidence to make the right choices.

Starting at a competing business after leaving your current company? Job seekers in this situation need to understand the terms of any non-compete agreements they have previously signed or plan on signing, as they can limit their options for future employment.

Before signing a non-compete agreement, it is recommended to review it carefully and understand the restrictions it imposes. It may also be helpful to consult a lawyer.

Suppose you are already bound by a non-compete agreement and are considering a new job opportunity. In that case, it is essential to review the agreement and determine if the new job would violate the terms of the agreement. If the new job is in violation, you may need to renegotiate the terms of the agreement or seek legal guidance.

Connexis Search Group is a 20-year-old permanent placement recruiting firm that has placed over 5000 candidates in the life science, diagnostics, and medical device industries.   During these 20 years, we only had one candidate that ran into problems with a non-compete.

We noticed there isn't much information about this, so we want to provide a general overview of information regarding non-competes.

What is a non-compete agreement? A non-compete agreement is a contract between an employee and an employer that restricts the employee from working for a competitor or starting a competing business for a certain period of time after leaving the company.

Major Problems ---What not to do:

  • Download company information. This is a federal offense and will cause significant problems.
  • Solicit your buddies to a new company.
  • Take your current clients to your new company –primarily if your new company directly competes with the previous company.

Gray Areas ----- Ask your attorney.

  • If you go to another company that doesn't sell competitive products, you should not have an issue.
  • If you go to another company and cover a different territory
  • If your non-compete is overly restrictive, many judges will not enforce them.
    • The terms of the agreement are more than 12 months
    • The agreement prevents you from working in your field of expertise
  • If your company does not enforce its non-compete with everyone, it could be viewed as discriminating against the people they choose to pursue.

Below is a video that provides more detail---remember to consult an attorney.  You most likely will only need 1 to 2 hours of their time.