Is this non compete enforceable?

Question

I was hired as a recruiter for a company that specializes in temporary travel assignments for Allied Health Professionals. They hired me because I knew alot about pharmacy recruiting and they wanted to start recruiting pharmacists for temporary assignments. They had me sign a non-compete in order to start working there. I started working there and absolutely hated it after 3 months. So I decided to take my knowledge of pharmacy(that I had prior to joining the company) and start my own permanent placement company. So now my former company is trying to enforce this non compete and saying that I am not to work at all in the healthcare recruiting industry anywhere in the united states for 1 year. While working for them I had no contact or relationships with any of their clients, my job was to only find travelers for open temporary jobs we had. Is this non compete reasonable and enforceable?

Answer 1

most non-competes are really not very enforceable. they are not likely to pursue it legally due to the cost, especially if  you don't take any of their clients that you established relationships with there.

go for it

Answer 2

You may still have to get an attorney to fight this out; but it's virtually certain that you would prevail.  A non-compete that covers the entire country is simply too broad - in fact it's preposterous.  You might be able to get the case kicked out quickly by asking for summary judgment.

Incidentally, in some places (such as California) non-competes are illegal to start with.  Consult with your attorney.

Answer 3

Non compete contracts are enforceable, however, a judge may decide that the terms are unreasonable. They are usually judged reasonable if you, for example, had a following of clients (or you took a copy of their client list) and tried to have them do business with your new company. It sounds like you are in a very murky area in that you might use knowledge you gained while working for them. The problem is that the cost and time to defend yourself will likely exceed your profits from the new company in the first year.

Answer 4

in many states these agreements are not enforceable and in the states that allow them there must be a bona fide trade secrets involved and there must have been a monetary consideration in the agreement. client list are considered bona fide secrets in some states but most agreements fail to have the monetary consideration for the former employee. no compensation then nothing for the employer to claim as a loss. your time working is work hours and that income can not be considered as the monetary consideration.

basically the employer has no loss so there is no claim in civil court.

if you had a contract and that contract provided for sign on bonus or any advance funds unrelated to your weekly wage then there is something for the employer to sue for. if you do not have a contract and this is just a policy statement then it is not enforceable in any state.  

if you have a contract then you should consult an attorney who is familiar with the laws in your jurisdiction and ALL the facts that are RELEVANT to your situation but....................

you will probably find there is nothing they can do to you.

if you do not have a contract contact your states department of labor and ask about the legality in your state.