Legal Question in Employment Law in Tennessee
Non-Compete Enforcable?
I formerly worked for a small web design company. About two months after I began working there, I was compelled to sign a non-competition ''contract.'' I use the word contract lightly, because in fact this was simply one piece of paper with one sentence on it, which read:
''A agree not to work for any current clients of [Company Name] in [County Name] for a period of one year after termination of employment.''
That's it. I was told that I had to sign this in order to continue working there. No compensation of any kind was given for signing the paper.
Since I have left the company, I have had more than one of their clients approach me about doing work for them. Is a non-compete this vague enforcable in Tennessee? Would their ability to enforce this be effected by the fact that they have failed to take action against two other former employees who left and took some clients with them? If it is enforcable, what are the possible consequences if this went to court? (We are talking about less than $20,000 worth of work in a year from any of these clients).
1 Answer from Attorneys
Re: Non-Compete Enforcable?
Yes, noncompete agreements are enforceable in Tennessee. Although they are disfavored in the law, provided that your employer continued your employment for even a day after your signing of the agreement, it is enforceable. Courts will look to determine if the agreement is reasonable in what is protected, the geographic scope of the protection and the length of the noncompete duration, but if all of that is in order, it will be enforced.
Depending on the exact language of the agreement, the possible consequences of violation include restitution of any profit and an injunction. This is a matter upon which consultation with an attorney would be advisable prior to taking any action. If you would like to contact us, my email address is [email protected]
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