Does a non-compete mean I can't change jobs?
I have a non-compete agreement with my current employer. It extends 1 year after the end of my employment. I am in the U.S. (Ohio). Does this mean that I can not seek new employment without waiting for the agreement to expire. I am an iPhone developer and want to accept an offer from another iPhone company. Other than that both jobs are developing for iOS, they are not in related business areas. I understand how in certain cases these agreements help protect a company's IP, but I don't know where the line is. Since I have only been in the industry for 2 years, I don't know what the general consensus is on what is ethical and legal. Any wisdom would be appreciated.
3 comments
You can move to California where non-competes (at least for employees at your level) are unenforceable. Unless, of course, there's some way for Ohio law to reach out to another state, which I think would pretty much require taking it to a Federal court (difficult at best). If you choose this route consult a lawyer.
(I strongly suspect Silicon Valley's long term success has more than a little to do with this century or so old policy.)
(I strongly suspect Silicon Valley's long term success has more than a little to do with this century or so old policy.)
California does protect you against getting into new non-competes. But in finance I have heard of New York non-competes being honored in California. I don't have any case-law (and it could be a successful example of bullying) but you may want to double check.
The stakes ($$$) are likely to be a lot higher in finance ... plus finance in the US is so NY centric bullying would likely be more effective; these sort of "would it be worth their while to sue?" questions are where you'd definitely want to talk to a lawyer. Also California's law doesn't cover the highest levels of companies like owners.
This article indicates moving to California can work, although it's not really clear legally why: http://www.boston.com/business/articles/2007/12/30/why_nonco...
To me this article strongly implies non-competes are non-enforcable after moving: http://www.crn.com/it-channel/18815740;jsessionid=50NGMBUQKT...
EMC is such a junk yard dog in this area and the allegations are described with sufficient specificity that it sounds like whatever non-completes Karwowska signed outside of California they couldn't be used against her when she presumably moved to Silicon Valley. EMC could only claim nondisclosure and nonsolicitation agreement violations....
To me this article strongly implies non-competes are non-enforcable after moving: http://www.crn.com/it-channel/18815740;jsessionid=50NGMBUQKT...
EMC is such a junk yard dog in this area and the allegations are described with sufficient specificity that it sounds like whatever non-completes Karwowska signed outside of California they couldn't be used against her when she presumably moved to Silicon Valley. EMC could only claim nondisclosure and nonsolicitation agreement violations....
you could always talk to your boss/HR/whoever and tell them you want to leave. there are a few things that could happen: 1) better offer to stay, 2) give you a letter/agreement to not sue over the noncompete, or 3) fire you, in which case the noncompete suit becomes hairier (you need to find work again, right?).
you could also tell the prospective company of the issue and see if they have a lawyer or anything to check it out.
you could also tell the prospective company of the issue and see if they have a lawyer or anything to check it out.
Depends on what your non-compete says. What is the actual language in the agreement you signed?
Very similar to this one http://contracts.onecle.com/ckx/fuller.noncomp.2005.03.17.sh...
So basically, the standard 'any business that competes' language? That is rather vague and open to interpretation. Is another iPhone OS company in competition even if they dont make the same kind of software? Your current employers could certainly make a strong case for that. Unless it is specifically spelled out in the contract well, that is why we have lawyers and courts- to settle the ambiguities in and different interpretations of contracts.
Basically, you won't know unless they try to enforce and either succeed or fail.
Basically, you won't know unless they try to enforce and either succeed or fail.