Legal Question in Employment Law in Tennessee

Non-Compete

I currently work for a company that provides contract IT workers to State of TN. I have worked for them 16 months. I signed an agreement with them with a NC clause of ninety (90 days) to not work for any competitor/customer. However, the State has a clause in their contract with these companies (of which mine is 1 of 7), that states if the State closes the individual's project, that individual can come back to State under new Statement of Work immediately. My question is, do I have to come back to work under my current company (due to NC clause) or could I shop my services to other companies (which I know have better compensation packages)? I have already been contacted by many of the other companies with statements that my current company cannot (will not?) hold me to the NC clause.

All assistance is welcome.


Asked on 1/29/01, 5:26 pm

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Non-Compete

Generally, noncompete clauses in contracts will be upheld by the courts that are reviewing them. There are, however, a number of exceptions to this general rule. Based on the facts you have outlined, it would seem likely that if you went to work for a competitor or customer without the State shutting down your project, you would be in violation of the contract. If your project is shut down, you would seem to be able to return to work for the State, but not for a competitor. This is a very complex issue and without seeing both your entire employment contract and the contract in existence between the State and your employer, it is impossible to give anything approaching a definitive answer. I hope that the information I have provided helps. Should you have any additional questions or wish to discuss this matter further, please do not hesitate to contact me.

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Answered on 3/15/01, 9:24 am


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