Hello, I am a student who is currently working for “X” window company and I have signed a Non-Compete contract with them stating that:
“During employment and one year after termination I am not to become an owner, employee, contractor, manager or anyone who associates with window cleaning within the company’s territory” (Pretty much the whole city)
I am not getting enough hours where I work and I feel I am not taking full advantage of my skills by working for a low commission with no coverage to vehicle operating costs. At the moment I am only making $200-$300 bi-weekly paychecks.
I would really love to start my own company and I would appreciate any advise from those who are willing to help a fellow entrepreneur. I am just unsure if I should quit my job to start this company up, and if there would be any legal repercussions I would have to deal with. Thank you so much!
So let me get this straight. You read and signed an agreement in order to obtain a job with X company and now that they have trained you, you want to go back on your word and enter the market and compete with them? If that’s the case then you’re not a person of integrity and you’re going to fail at owning your own business anyway. I say go find another job and read the agreements more carefully this time.
If you were my employee, and you told me that i wasn’t giving you enough hours and you would like to go out and get some of your own business, I would let you, as long as you still showed up for work when I needed you.
I think that non-compete contracts are some what unfair as an employer, and don’t like using them as a business owner. Also from what I have heard, they are very difficult to enforce legally, so talking to an attorney is a good thing to do if you are going to start your own company. If you were my employee I would work with you.
Also you could just start advertising out side of the city until the contract terms have ended then move into the city.
I agree with Rudd. If you wanted more hours and could handle more resposibility, I would work with you. If I didn’t have enough glass for you to squeegee without cutting someone else, I would find something, or train you to perform other productive tasks within the company. I will work with people within the company that show initiative and want to take on more responsibility and can handle it.
If you want to leave because you want to open your own shop. I can respect that, that is growth. I would just remind you that you signed the non-compete and that if you are out soliciting my customers, we will have a problem. Open your shop if you want, don’t try to start your gig with my customers
I see where you are coming from but I disagree. He is getting 150 bucks a week, what is he supposed to do?
Now if No-compete’s actually have any wieght in AZ, then well, thats a different story. So contact am attorney like Jet City said. In California Non-compete clauses don’t mean SH** legally speaking.
(post based on my limited experience with non-competes and talking to a lawyer friend.)
“During employment and one year after termination I am not to become an owner, employee, contractor, manager or anyone who associates with window cleaning within the company’s territory” (Pretty much the whole city)
I can’t see that being enforcable, basically it is saying that you can’t even get a job with another company. I would say, go ahead do your own thing, just don’t try and poach any of your former employers customers for at least a year
In general I think non-competes should be renamed, You steal my clients I get to whack you in the hand with a 18 inch brass sgueegee. In the end I think generally all anyone cares about is not having customers stolen.
Actually, according to my attorney, non-competes are very enforceable as long as they carry a specific geographic area (his does) and a reasonable time limit (his does that too.) My non-compete reads very much like the one he signed and I assure you I would enforce it in court if I had to.
[FONT=Arial][SIZE=2]California is one of the few states that prohibit non-compete agreements
He is not in California
Does it not matter at all to you that he agree to these terms as a condition of his employment?
Here is the Arizona Law:
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Under Arizona law, a restrictive covenant will be considered unreasonable and unenforceable: “1) if the restraint is greater than necessary to protect the employer’s legitimate interest; or 2) if that interest is outweighed by the hardship to the employee and the likely injury to the public.” Valley Med. Specialists v. Farber, 982 P.2d 1277, 1281 (Ariz. 1999). Generally, non-competition restrictive covenants are either reasonable and enforceable or unreasonable and unenforceable. However, “[i]f it is clear from its terms that a contract was intended to be severable, the court can enforce the lawful part and ignore the unlawful part.” Olliver/Pilcher Ins. v. Daniels, 715 P.2d 1218, 1221 (Ariz. 1986).
As a result, Arizona courts have adopted the “blue pencil” doctrine as expressed in the Restatement (Second) of Contracts. See, Farber, 982 P.2d at 1286 (“Arizona courts will ‘blue-pencil’ restrictive covenants, eliminating grammatically severable, unreasonable provisions.”) “Where the severability of the agreement is not evident from the contract itself, the court cannot create a new agreement for the parties to uphold the contract.” Olliver/Pilcher Ins. v. Daniels, 715 P.2d at 1221.
Not if his employer is not providing him with sufficient hours to feed and clothe himself.
Sorry…if a company cannot keep an employee busy, then it has no business hiring in the first place much less trying to prevent him from earning a living elsewhere.
Interesting read Steve. I guess it’s open to interpretation as to whether his employer can rightfully claim the whole city as the non compete area. Maybe part of it but I doubt he can get the whole town.
California is one of the few states that prohibit non-compete agreements
Yes, I know, I was the one that just pointed that out
[B]
He is not in California[/B]
I am well aware that Arizona is not in California. Thanks
2. Does it not matter at all to you that he agree to these terms as a condition of his employment?
I suppose it matters to me a little bit. But mostly I feel the same as Randy Carson’s post:
[B]"Not if his employer is not providing him with sufficient hours to feed and clothe himself.
Sorry…if a company cannot keep an employee busy, then it has no business hiring in the first place much less trying to prevent him from earning a living elsewhere. "[/B]
As someone here in Ohio that has went through this myself, the noncompete dosen’t mean all that much for a window cleaning company. It is meant to protect big corporations or trade secrets. As long as you are not knocking customers doors and saying “hi I just started a business of my own, would you like to be my customer instead” you will be fine. Trust me it would be more money for your employer to pay attorneys than it would be worth to go after you. Just be on the up and up though and state your intentions like I did.
I have absolutely no intention of stealing customers. I feel that would be extremely immoral and poor business practice.
I have always wanted to start my own business since I was a little kid, I just had no idea what to get into until now. I am good at my job, I enjoy it, and I feel it would be a great experience working for myself and hope this would be a gateway into many other businesses.
I am most worried about
A) Legal action against me for the non compete
and
B) Leaving the comfort of a job I enjoy and taking the risk of going broke
I know that everyone at one point has problem “B” and that I just need to take the initiative to take risks to be successful. I just want to be sure I am not jumping into something and being reckless.
