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Old 06-07-2011, 09:07 AM   #1
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Default Unemployed - in Greenland?

Of course taken from the great Vizzini... but technically, I was never employed

Yeah, May 31st I was let go for rather stupid reasons - but I was "hired" and paid as a contractor (my own taxes, 1099, insurance, and all) but treated more like an employee. Spend 8yrs with that company making them about 150K a year net on my labor, but will now venture out and do my own thing.

Issue is, I signed a non-compete with the guy when I 1st started which basically summed up says I cannon compete directly or indirectly with the business in the entire state of Alabama for a period of 5 years from date of dissolvement of contractor services. Of course I have a lawyer and she says I can walk when I want too - in Alabama, you can't have a full non-compete upheld to a contractor, who by definition is already in business for them selves. However, a partial non-compete (smaller geographical area, shorter term) can be enforced - but that's not what I've got. A severability clause is also included, which basically means whatever a judge finds suitable, will be applied.

Short story is, the tracking the miata will have to stop for a period until the coast is clear financially speaking, with a possible lawsuit over the horizon. It sucks, but I'm excited.

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Old 06-07-2011, 09:20 AM   #2
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Quote:
Originally Posted by GeneSplicer View Post
Of course taken from the great Vizzini... but technically, I was never employed

Yeah, May 31st I was let go for rather stupid reasons - but I was "hired" and paid as a contractor (my own taxes, 1099, insurance, and all) but treated more like an employee. Spend 8yrs with that company making them about 150K a year net on my labor, but will now venture out and do my own thing.

Issue is, I signed a non-compete with the guy when I 1st started which basically summed up says I cannon compete directly or indirectly with the business in the entire state of Alabama for a period of 5 years from date of dissolvement of contractor services. Of course I have a lawyer and she says I can walk when I want too - in Alabama, you can't have a full non-compete upheld to a contractor, who by definition is already in business for them selves. However, a partial on-compete (smaller geographical area, shorter term) can be enforced - but that's not what I've got. A severability clause is also included, which basically means whatever a judge finds suitable, will be applied.

Short story is, the tracking the miata will have to stop for a period until the coast is clear financially speaking, with a possible lawsuit over the horizon. It sucks, but I'm excited.

Many companies throw on Non-compete caluses that don't have the ability to enforce them. There is also a difference between if they fire you or you quit and if you are employeed or contract labor. Obviously if you quit and you where employeed directly through them, then there would be the most grounds for probable enforcement.

It's kind of like the "swim at your risk" sign at pools. They are still liable, but they just don't want you to think they are. A lot of what goes on is just smoke and mirrors to scare you.
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Old 06-07-2011, 09:29 AM   #3
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non-compete clauses are illegal in VA. 5 years is a crazy long time for a non-compete, even in sales.
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Old 06-07-2011, 10:29 AM   #4
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My mind voids the non-compete if your employment was ended by the employer by no fault of your own.

"I didn't *want* to leave your business and take my skills elsewhere, but you gave me no choice"

And if you weren't actually an employee to begin with - then **** them.

Just make sure the old company doesn't find out that you're pitching the new company to your customers.
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Old 06-07-2011, 10:32 AM   #5
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Move your operation to Florida and pay no state income tax?
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Old 06-07-2011, 11:05 AM   #6
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Sucks to face an uncertain situation Bryan but it sounds like you should come out better for it on the other end.
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Old 06-07-2011, 11:17 AM   #7
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From previous experience it boils down to the fact that you cannot take his customer list with you when you go and specifically target them. They cannot prevent you from working in your chosen field. And I believe they typically only apply to employees and not contractors. And I also believe they apply if you leave voluntarily and not if you are terminated. The last two points are speculatory.
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