Non-Compete agreement

[chennai_gang]

Hi,

I have signed a NCA for my current employer Company A that says below...

Non competition. I acknowledge that, in the course of my employment by the Company I will be intimately involved in

developing and maintaining the Company’s goodwill with its clients. Accordingly, I agree that during my employment by the

Company and for two years thereafter, I shall not, directly or indirectly, either alone or with others:

(a) accept employment from, or provide services to, any person or entity who or which was a client of Company during

my employment with Company, except through and for the benefit of the Company; or

(a) accept employment from, or provide services to, any person or entity who or which was introduced to you or perform

work directly or indirectly though Company during my employment with Company, except through and for the benefit of

the Company; or

(b) solicit any of the Company’s clients to do business with any person or entity other than the Company, or divert any

client away from engaging in business with the Company; or

© solicit the employment of, entice away, or in any other manner persuade or attempt to persuade to leave the

Company’s employment, any person employed by the Company.

I am currently working for Client X thru Company B (middle vendor). So the setup is like

Me -> Company A -> Company B -> Client.

Then came this offer from Client X to work full-time for them.

Is NCA enforceable here? Is Client X considered as client of Company A? Will I violate anything if I join Client X?

Looking forward to opinions.

Thanks

[JoeF]

Non-compete agreements are generally valid in the US, except in California, where the CA Supreme Court has ruled them invalid.

[chennai_gang]

Thanks for the response Joe.

I have two question:

1) Can they sue Client X or Vendor B for the damages as well even if they do not have any agreement with them?

2) What are my options if my employer is threatening to take legal action in case I join the client X as they are indirect

client for my employer?

[JoeF]

They can sue you, and they can possibly sue your new employer.