Legal Question in Employment Law in North Carolina

No Compete Agreement

I'm an hourly employee in a call center for a third party company that accepts calls from employees of many different businesses. We write reports for identified and anonymous callers about ethical issues related to their particular company. The reports go to clients who pay for our services.

On my first day on the job, I was given a ''no-compete'' document to sign. I've never encountered this before, and was not expecting it. My impression was that my employment depended upon my signing the document, which I did. The agreement was that I would not work for a competitor for one year if I decided to leave the company.

I have since learned about a competitor that has far more tolerable working conditions and better pay. I am not an executive or even a manager in my current company. I'm at the bottom. The company will not lose money if I leave and/or work for the competitor.

How can I get out of this situation without getting sued?


Asked on 6/04/02, 12:32 am

1 Answer from Attorneys

John Kirby Law Offices of John M. Kirby

Re: No Compete Agreement

That's a tough question. You may want to consult with a lawyer, or perhaps even approach your present employer directly about the matter. As a general matter, "To be enforceable, a covenant must meet five requirements--it must be (1) in writing; (2) made a part of the employment contract; (3) based on valuable consideration; (4) reasonable as to time and territory; and (5) designed to protect a legitimate business interest of the employer." My main question about your non-compete agreement is whether it really protects a legitimate business interest of your employer. It does not sound as if you are in a position to take away clients. For that reason, you may have a good basis for challenging the validity of the provision, as it applies to your job. As a more practical matter, it is not clear whether you should inform your employer of your intentions. Your new employer may also want to know about that non-compete provision, as it could expose them to some sort of liability (e.g. tortious intereference with contract), and it could affect their hiring decision.

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Answered on 6/04/02, 9:27 am


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