Is a non-compete clause enforceable if the company is sold?
First, non compete clauses ARE enforceable in California if and only if the employee sells all of his or her interest upon leaving the company and the non compete is part of the stock sale agreement and reasonable in scope. Appreciation of ownership value will only be taxable once the stock is sold.
Are there any non-compete agreements that are valid?
Many self-drafted non-compete agreements attempt to place time lengths that are unreasonable.
Can a non-compete remain in effect after an acquisition?
The Joyner case suggests that whether or not the non-compete continues in effect after a stock acquisition would depend upon how the changes in management of the acquired company affected the employees under the noncompete.
Can a non-compete agreement be assignable to a successor employer?
Under Pennsylvania law, non-compete clauses in employment agreements are not assignable to successor employers unless there is either (1) an explicit assignability provision contained in the agreement, or (2) evidence that the employee consented to the assignment.
When do you have to sign a non-compete form?
You might be confronted with a new non-compete form by your current employer when receiving a raise or promotion. Or you might be asked to sign one in order to get severance if you’re fired.
Can a non-compete agreement be signed by a new owner?
If it is, then agreement by the employee is necessary for the non-compete to continue in effect under the new owner. If you have been given a non-compete agreement and you have questions about it, or if you’ve been asked to sign a contract with a non-compete provision, contact our office.
Can a court invalidate a non-compete agreement?
However, if you are trying to restrict someone from having contact with your clientele or using certain practices but that information is not protected and is made readily available to the general public, the court will likely find that restriction to be invalid.
What are the effects of non compete agreements?
However, some research has shown that non-competes tend to limit job mobility, accelerate talent flight and discourage venture-capital investments in areas that enforce them.
How are non-compete agreements enforced in Virginia?
Virginia courts view non-compete agreements as personal services contracts. Contracts for personal services, as mentioned above, are not assignable to an employer’s new owner unless both parties agree. Under this view, Virginia law would not allow a non-compete agreement to be assigned to, nor be enforced by,…