Legal Question in Employment Law in Tennessee
Non-Compete Contract
I am a cheerleading/tumbling instructor at a cheerleading gym. I want to start my own business in the same location doing the same thing as I am doing now. I signed a non-compete contract but the contract has not held up with previous employees and the restrictions are a little strong.(Two years and in an area of about 2/3 of the United States) Will this contract hold up in court? And is there any reason to even worry about this contract?
1 Answer from Attorneys
Re: Non-Compete Contract
Yes, there is reason to worry. Those agreements can be enforced to the extent that they are reasonable. In Tennessee the Court has the ability to re-write the contract to make it reasonable, as opposed to throwing the entire thing out.
It all depends on the facts of the specific case. Factors courts look to are: the extent to which the employee cannot make a living otherwise, did the employee quit or was she fired, is the employee using the confidential, proprietary trade secrets of the employer in her new venture (such as customer lists, pricing information, goodwill, etc...), is there a geographic restriction that makes sense, and there are others.
Usually you can negotiate your way out of it. My best advice is to make sure you are not using your former employer's customer lists or your contacts gained from working there to jump start your business. Hire a good attorney to help you through these areas.
If you have any more questions, please feel free to contact me at 800.403.7868 or [email protected]