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  1. #1
    Join Date
    May 2005
    Location
    keokuk, ia
    Posts
    2

    Default Double non-compete

    I sure hope someone can help point me in the right direction.

    First i'll start off by explaining how things happened.
    I worked for an ISP (internet service provider) in Iowa for almost 6 years, in the beginning I signed a non-compete stating I would not work for any company in a so many mile radius (sp?) for 6 months after my employment that offered the same type of services.

    After a while I decided to see if there was any other jobs out there I could get into that I would enjoy, by this time I had completely forgotten about my old NC, and started working in IL. for a computer resale company. I left the ISP on good terms and was told I could come back at anytime. (rare offer these days).

    The first day on the new job I was handed a stack of papers and told to sign the lines that said "signature" I felt rushed and didn't have much time to read through things.

    I continued to work at the sales shop for about 2 and a half months. Until I decided to quit due to lack of cooperation from my employer. Along with the difficulty in getting them to listen to me I found out they where using the same software keys on several computers...a big no no.

    I told the sales shop I was going to quit before my evaluation period was through and went back to my old job.

    I then got a call a few weeks later from a lawyer saying I had broken the non-compete. I was shocked, I didn't remember signing one. He faxe'd me a copy and I looked over it. Down the paragraphs it stated I could not work in any related field in the USA for 12 months, including ISP's. Even though this store did not do anything with Selling Internet Service. The non-compete also stated that I could not call anyother store for pc help..

    At this time I was reminded about my prior non-compete with the ISP,

    Can the pc sales store really do anything since I had a prior non-compete, did not finish my evaluation period, went to another state, and resumed employment with my old job?

    Thank you.
    crash

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Iowa Non-Competition Clause

    Iowa has set forth the following test for noncompete clauses:
    Quote Quoting White Pigeon Agency, Inc v Madden, No. 1-203 / 00-1189 (IA App, July 31, 2001)
    The court employs a three-prong test when deciding whether to enforce a restrictive covenant. Phone Connection, Inc. v. Harbst, 494 N.W.2d 445, 449 (Iowa Ct. App. 1992). First, the restriction must be reasonably necessary for the protection of the employer's business. Id. Second, it must not unreasonably restrict the employee's rights. Id. Finally, the restriction must not be prejudicial to the public interest. Id. While fair protection must be afforded to the business interests of the employer, the restriction on the employee must be no greater than necessary to protect the employer. Dental East, P.C., 423 N.W.2d at 555. The covenant must not be oppressive or create hardships on the employee that are out of proportion to the benefits expected by the employer. Id.

    The reasonableness of a restraint and the validity of a covenant ot to compete seldom depend on a single fact. Iowa Glass Depot, Inc. v. Jindrich, 338 N.W.2d 376, 382 (Iowa 1983). Instead, we consider and weigh all the facts carefully to determine each case in its entire circumstances. Id. These factors include the nature of the business, a defendant's proximity to the customers, accessibility to information peculiar to the employer's business, the nature of the occupation that is restrained, as well as matters of basic fairness. Id.

    A restrictive covenant must bear some relation to the activities of the employee. Baker v. Starkey, 259 Iowa 480, 490, 144 N.W.2d 889, 895 (1966). It must not restrain the employee's activities in a territory into which his former work did not take him. Id. Nor should it give him the opportunity to enjoy undue advantage in later competition with his employer. Id. The relevant question is whether the covenant restrains the employee beyond the point where he could be reasonably anticipated to injure his employer's business.
    It sounds like you have a pretty good defense on the first prong - as the employer's business does not overlap with your present work, how is the clause reasonably necessary for the protection of that business?

  3. #3
    Join Date
    May 2005
    Location
    keokuk, ia
    Posts
    2

    Default

    These factors include the nature of the business
    Well the business are two different types but both offer computer repair.

    a defendant's proximity to the customers
    Most of the customers are in carthage IL, which is about a half an hour from keokuk, ia.

    accessibility to information peculiar to the employer's business,
    Not sure what this would include, I did not stay long enough to learn anything new.

    the nature of the occupation that is restrained, as well as matters of basic fairness.
    Pretty much anything doing with computers is restrained by the NC. as far as fairness I think going back to my former employer should not be effected by a non compete from another state...but then again, I know nothing about this type of law.

    Thanks

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