Business
Non-Competition Agreement
Maine
Can an consultant to a company be asked to sign a Non-Compete Agreement when that company is being acquired by another company.
My husband is a consultant for a company that is being acquired by another company. The acquiring company no longer needs his services. The acquiring company is asking my husband to sign a non-compete for nothing in return. They stated that he is not an employee of the company being acquired, so financial consideration is not on the table. The acquiring company is in Maryland. The company being acquired is in Maine. Is this legal?
Answers from 1 Lawyer
Answer
Business
Maine
Jane C.
ContractsCounsel verified
I suggest you have an attorney review the terms of the non-compete.
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Angela Y.
The answer depends largely on two factors: 1) what documentation did you sign that had non-compete language and 2) whether the non-compete is enforceable. Many states are trending towards non-enforceability of non-competes, depending on how burdensome they are on the person.
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My previous job had a secret non-compete closure
I left my previous job because I did not appreciate how I was treated when returning from maternity leave. I stepped down because with a colic infant and a national staffing shortage I couldn’t handle the work load, right after I stepped down they changed the schedule to minimize stress for the current programs director. They also allowed employees to unprofessional to me, when I returned the employee I trained and managed for years lectured me how todo my current position and asked if I had any disabilities or injuries because I had a C-section. This company for years treated me differently then other employees even though I ran and managed profitable programs. Before I left I asked Premier Aquatics that I wanted to be placed in a position similar to the one I had before, and they didn’t have a position for me. I decided to resign and I want to work for another company near their location. I’ve known in the past that they do come after employees with a non-compete and they never offered me anything for the non-compete.
JOSEPH L.
Generally speaking non-competes are not enforceable in California against employees or independent contractors. The situation may be different depending on all the facts if you were an equity owner or partner in the company. Also, when a business is sold, a reasonable non-compete is enforceable against the former owner(s) since they were paid as part of the purchase price for non-competition representations. California has long had a public policy against non-compete clauses against employees and independent contractors since it affects their ability to earn a living. I am not sure what information you have about them "coming after other employees". Note: I don't have all the facts, and this answer is for informational and research purposes only.
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I recently signed a non-competition agreement with my current employer, which restricts me from working for a competitor for a certain period of time after leaving the company. However, I am concerned about the enforceability of this agreement if I am terminated without cause. I want to understand if being terminated without cause would render the non-competition agreement null and void, or if I would still be bound by its terms.
Charles D.
Without seeing the contract, the short answer would be, yes, you are obligated regardless of how you are terminated. The first question your attorney would look to answer is if the non-compete is valid to begin with. IN some situations, a non-compete without any geographical limitation might be over broad and therefore non-enforceable.
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