Non-competitive agreements are generally used to keep employees from taking their skills and clients to competitors. While a clause may not seem strong enough to control a tier 1 Outdoor Tools and Equipment Retail organization, a clause that specifies your agreement is valid for a year after your employment ends, overseas, can be detrimental to the business. All agreements must be agreed upon by both parties, but there are several factors that determine how enforceable a non compete agreement layoff clause will be.
In the event of a lay-off it still stands, but there are possibilities to negotiate terms of a contract during an acquisition. In any case, if you have any sort of agreement with your employer it is best to take it to a professional to make sure you know your rights.
Example; if you’re an engineer for a manufacturing company in the outdoor tools and equipment supply chain that has an agreement not to work with a similar company in the area, you could be breaking that agreement if you were to work at a local tools and equipment retailer.
A non-compete agreement is a type of contract that forbids employees, former employees and sometimes outside contractors from entering into competing businesses within a given period or territory. Non-compete agreements forbid employees to do any similar work for a competing company. They are sometimes used when an employer invests time and money into training employees and wants to prevent them from working elsewhere after they have been trained. Non-compete agreements are only enforceable down to state law, however, some companies require them to apply for the company itself rather than a state.
Since this is a big talking point for the outdoor tools and equipment industry, it would be wise for a person to find out if their employer has a standard and up-to-date employee agreement. If you are unsure, even if your company doesn’t have an employee agreement, find out the company standards by talking to your boss.
For example; if you were laid off by your superior, you told him or her that since you were out of a job, you would like to meet with them on a regular basis (in case they find they are hiring again). Your old superior likely has to abide by a contract with your former employer, but as soon as you are out of their system, your name is out and it is up to the company to bring you back. Having a lawyer present in these situations will ensure that you can get a sense of understanding as to what is going on.
If similarities exist in your job description with tools and equipment for a hardware store and your former employer, a potential employer could be a conflict of interest, which is a legal term. It is important to really hammer down (forgive the pun) the term of your contract when it comes to the two-year defence and time of contact. Even larger organizations like an outdoor tools and equipment retail employer could be a conflict of interest because a large organization does not always just have trade secrets, they also just have some research and experience with products and the market.
It is best to check with a professional to find out if your contract is best for you.
Example; Your employment ended with Employer “A” in 2017, you sign a contract with employer “B” right after. Your employment ends with Employer “B” in 2019, and you think for an instant that your contract with employer “A” is null and void. Well, Non-compete agreements vary by type, state, and duration. So, check with a professional to understand if you have a revenue stream with either employer A or B and how long it lasts.
Don’t go into a meeting with your boss without a contract to back you up, and don’t go into a discussion with a lawyer without an understanding of your rights as a current or former employee.
If you have questions, ask your employer first and get an agreement in writing so you can have an understanding of the extent of your employment and the rights to your contract.
Example; if you worked for a company for two years before being laid off, but you also signed a contract that said your contract is active for five years after the end of your employment, then does that mean “A” gets you for five years plus two years? Or just two years afterward? Finding out is invaluable and having a check in writing is beneficial to you if anything happens.
The future of agreements is to protect the company from anyone that could harm the business. A lay-off is base punctuation for most employees, and questions about their future can become the centre of attention, as we learned from our examples.
For more information on employment contracts and rights, you can visit the U.S. Department of Labor.
