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Does a Non-Compete Agreement Come Back Into Effect if You're Rehired

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  • 12-31-2014, 01:17 PM
    maxshuty
    Does a Non-Compete Agreement Come Back Into Effect if You're Rehired
    My question involves labor and employment law for the state of: MN
    If I signed a non compete clause for one year and they let me go, what happens if they re-hire me?
    Basically I worked for a company for five years and signed a non compete clause that would last one year after I quit or was let go. They let me go and the one year is up in February. Today they offered me a lower position than I had before, will that old paperwork I signed still be valid and will I have to wait a whole year again from today if I accept the job offer? Or will I need to sign a new one for that to take effect again? Basically Its a real estate business and I was planning on opening my own business in February as there is very low overhead and my previous buildings I managed have said they would rather deal with me than my old company. I can make around $180k/year off of them, but my old company offered me a position that I had when I first started with the company. I'm wondering if my old contract I signed will still be effective if I take that position or if they will make me sign a new one for it to be effective? (The way this place operates I have a sneaking suspicion they'll forget to have me sign any new ones. I'm located two hours from their office and work out of my house managing the properties.)
  • 01-02-2015, 01:16 PM
    Mr. Knowitall
    Re: Does a Non-Compete Agreement Come Back Into Effect if You're Rehired
    Your questions cannot be answered without a review of the actual policy language. You can ask the employer what its position is, or you can have the language reviewed by a lawyer, but we can't explain the legal significance of language we have never seen.
  • 01-02-2015, 09:46 PM
    maxshuty
    Will This Non Compete Agreement Be Valid Again
    My question involves labor and employment law for the state of: MN

    I was laid off 11 months ago, and in February this non compete I signed will expire. The catch is that the company want to hire me back in a different position. I told them I'm not aigning anything and they said that's fine. I'm wondering if they are up to something though - will this non compete agreement become valid if I become re-employed by them before a year has elapsed? The agreement says:

    "Employee agrees that during the term of the employee's employment with the company and for a period of twelve (12) months after the employees employment with the company terminates, either voluntary or involuntary, the employee will not alone or in any capacity, without the prior written consent of the company, perform any act or engage in any activity which competes or interferes directly or indirectly with the any existing or prospective relationship between the company and any person or entity who is or was a client, customer, employee, investor, or account of the company during employees employment with the company. The non-competition obligations described above shall survive the termination of this agreement."

    Basically I was offered a job back, but I have had to ignore calls from several senior living places I used to manage who said in voicemails that they would like me to manage them versus my old company who still does manage them. Each one pays about $3k/month and I have had about four personally reach out to me, but it sucks because I can't say anything back to them until February. And just yesterday I was offered a position back at my old company but I can't decide which route to pursue... I'm wondering if I accepted that job offer and told them I'm not signing anything (it's for a totally different position anyway) if they are up to something to try and get that old non-compete back into play. Let me know, I appreciate your help!
  • 01-03-2015, 12:01 AM
    Bubba Jimmy
    Re: Will This Non Compete Agreement Be Valid Again
    Non-competes are all over the board as far as enforceability. The general guidelines is that the company has to have a legitimate interest it is protecting, the term has to be reasonable, and it has to be limited geographically to a reasonable area. What you posted doesn't mention geography. Also, it isn't clear what your role is and whether there is some legitimate interest the company has in keeping you from working for a competitor. So it is impossible to tell you whether your agreement is enforceable or not. This is NOT something you want to rely on free advice in an only forum for. An attorney familiar with employment law in MN needs to actually look at your contract and your specific situation in order to advise you responsibly.
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