Tuesday, February 3, 2015

Non-Compete Agreements With Non-Solicitation Restrictions in Pennsylvania - Some Insight From Philadelphia Area Employment Lawyers

Get Out and Meet Some New Folks -
But STAY AWAY from Your Old Clients!

If You Are in Sales, the Non-Solicitation Clause is Enforceable

Although the term "Non-Compete Agreement" is often used as shorthand for what we in the law refer to as "Restrictive "Covenants," Courts are in general reluctant to enforce them if the former employer simply seeks to stop Joe or Jane Average from working for a competitor.

However, if Joe or Jane Salesperson leaves former employer and starts to solicit its customers for his/her new employer, fur will fly, and Courts will generally stop such activity.

If You Are a Salesperson, Negotiating a Non-Compete Agreement 
Before Starting Your New Job May Be Vital

If you are an experienced salesperson with a "book of business," signing a Non-Compete Agreement with a Non-Solicitation Clause (and almost all Restrictive Covenants contain such clauses) may be a really bad idea.

Salespersons Beware

Problem: You join Company A, and sign a Non-Compete Agreement with a Non-Solicitation clause prohibiting you from servicing any of Customer A's customers for 12 months after you leave its employ.

You bring all of your existing clients into the fold during your first few months with Company A, but are terminated 6 months after you start (or resign for one reason or the other).  You want to move on to Company B, which is interested in you because of your skills, personality and existing client base.

You may well be stuck, because of the contract you signed with Company A.  Fair or not, you agreed to its terms, and the customers you brought to Company A are now considered Company A's customers, so that your solicitation of them on behalf of Company B will be a breach of contract.

Solution:  You need to identify your customer base with specificity before you join Company A, and come up with parameters to exclude it from the reach of the Non-Solicitation clause contained in your Restrictive Covenant contract with Company A.

Such negotiations can be tender, but ignoring the potential Problem identified above can have dire consequences.

HERE ARE SOME OTHER ARTICLES YOU MAY FIND WORTHWHILE:

Are Non-Compete Agreements Enforceable in Pennsylvania?  How Can I Negotiate a Non-Compete?

Non-Compete Agreements and Trade Secret Litigation - The Fulcrum is Whether the Legitimate Business Interests of the Former Employer Are Detrimentally Affected by an Employee's Violation

Non-Compete Agreements - Legally Enforceable or Not, Negotiation is Often the Key

The Truth About Non-Competition Agreements That Your Employer Does Not Want You to Know - Mere Breach of Non-Compete Not Enough for Injunction

The Milkman Principle: Why Solicitation of Former Clients or Customers Will Always Get You in Hot Water in Pennsylvania if You Have a Non-Compete Agreement

Pennsylvania Employment Lawyers: How to Respond to Cease and Desist Letters Concerning Non-Compete Agreements

I am Being Offered Severance But Asked to Sign a Non-Compete in Pennsylvania - What Should I Do?  Pennsylvania Employment Attorneys Explain

Should I Sign a Severance or Separation Agreement Requiring Me to Consent to a Non-Competition Restriction?  Pennsylvania Employment Lawyers Discuss

What Fiduciary Duties do Employees Owe to Their Employers? Taking Your Employer's Confidential Information Before Resigning Violates an Employee's Duty of Loyalty

How Can I Contact My Old Clients and Customers Without Violating My Confidentiality, Non-Compete and Non-Solicitation Agreement?  Pennsylvania Non-Compete Lawyers

Trade Secret Clauses in Employment Agreements - Does My Employer Have Trade Secrets? Pennsylvania Non-Compete Lawyer

Confidentiality and Trade Secret Covenants in Employment Contracts are Always Valid, and Your Electronic Footprint Tells a Story

Insulation Corp. v. Brobston:  Is My Non-Compete Covenant Valid and Enforceable if I am Fired From My Job Under Pennsylvania Law?

Overly Broad Non-Compete Agreement in Pennsylvania?  Need an Attorney for Your Non-Compete Contract Dispute?

Kistler v. O'Brien:  I Signed My Non-Compete Agreement After I Started My Job - is it Enforceable Under Pennsylvania Law?

What State's Law Applies to My Employment Contract?  What is a Choice of Law Provision?

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