Legal Question in Employment Law in Washington

non comp &chapter 11

I signed a non comp agreement 4 months ago after working for the company 3 years. Dec.1,They let most of the employees go and filed chapter 11. They have eliminated the service area I worked for. Can I get another job in the same industry? I already have a job offer, but my old company won't release me from non comp.


Asked on 12/23/08, 12:51 pm

1 Answer from Attorneys

Susan Beecher Susan L. Beecher, Atty at Law

Re: non comp &chapter 11

Much depends on the details of the non-compete.

First, you mention that you only signed the non-compete four months ago, even though you have been working for them for three years. If the only thing you got for signing the agreement was "that you got to keep your job", the agreement may not be valid.

Also, if the terms of the non-compete are very broad, it may not be valid.

The good news is that courts do not like non-compete agreements and so the agreement must be very narrowly tailored, and there must be "consideration" (something in it for you besides just keeping your job).

The bad news is, if your former employer decides to try and enforce, they will probably name your new employer in the suit, too, and the new employer may just let you go to avoid the hassle.

I would encourage you to have an attorney look at the agreement so that you know exactly where you stand. If the conditions are in your favor, a well written letter from an attorney to your former employer may enable you to avoid trouble.

Good luck.

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Answered on 12/23/08, 3:59 pm


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