That depends. There may be claims that you can claim against the new employer because you did not tell yourself in advance that it was a requirement. These rights vary from state to state and may depend on the applicability of competition bans. Of course, it is quite possible that even an experienced labour law specialist will not be able to fill holes in your non-compete agreement. In this case, the document is really “airtight,” and you will waste your time and money getting around it or making it invalid. A better strategy is for a lawyer to review your non-compete agreement before signing it, so as not to unnecessarily limit your job prospects five, ten or even twenty years later! Accused Brian Wallace worked briefly in January and February 2012 as a personal trainer for the applicant Life Time Fitness (“LTF”). When Wallace resigned, he took membership files and contact information with him, and he is now employed at Prestige Fitness, a direct competitor to LTF, less than 2 miles from the LTF site where he worked. LTF filed its complaint on March 23, 2012, in which it alleged breach of a confidentiality and non-competition agreement, misappropriation of trade secrets, processing, breach of the duty of loyalty and unfair competition. While unfavourable, courts impose non-competition prohibitions where appropriate in all circumstances.2 See Prow v. Medtronic, Inc., 770 F.2d 117, 120 (8th Cir.
1985) (interpretation of Minnesota Law). To determine the adequacy of a non-competition agreement, the Tribunal examines: 1) whether the restriction is necessary to protect the employer`s business or good rector, (2) whether the restriction is greater than necessary to adequately protect the legitimate interests of the employer, 3) the duration of the restriction and (4) the geographical extent of the restriction. Id. (referring to Bennett v. Storz Broad. Co., 134 N.W.2d 892, 899 (1965)). That depends. A first look at the terms of the non-compete clause itself. Is this about resigning? Assuming he does – and says the competition is still valid, even if you are terminated — the question is: Is it legal? Here, too, the answer is this: that`s what counts.
If the reason for your dismissal is an employer`s fault – discrimination, illegal employer activity or similar misconduct – most courts have ruled that a non-competition clause is no longer applicable.