Non Compete Agreement and Your Job Search

Navigating a Job Search While Stuck to a Non Compete

When embarking on a job search, it's crucial to consider the impact of any existing non-compete agreements. Even if your former employer isn't actively pursuing enforcement, potential new employers often inquire about non-competes and may request to review them before extending job offers.

Understanding the limitations imposed by your non-compete is essential as you initiate your job hunt. This knowledge helps you identify companies and roles that won't conflict with your agreement and empowers you to make informed decisions.

Here's what you need to consider:

1. Understanding Non-Compete Restrictions

Before assessing the enforceability of your non-compete, comprehending its written restrictions and implications is essential. This insight allows you to categorize job opportunities as either safe or risky in terms of potential conflicts with your agreement.

Key aspects to scrutinize include:

How does the agreement define "competitor"? Some non-competes cast a wide net, labeling anyone within a particular industry as a competitor. Others are more specific, focusing on companies offering similar products or services within the same geographic region. Understanding this aspect can help you identify prospective employers that align with your non-compete.
Is the geographic area clearly defined? If your non-compete applies to a specific region (e.g., Massachusetts or New England), job prospects outside of that area may be unaffected by its restrictions.
What are the non-solicitation obligations? Apart from non-compete clauses, these agreements often include restrictions on soliciting or conducting business with the former company's clients or prospects. Review the agreement to determine whether it limits you to soliciting customers you've dealt with or extends to any of the company's customers.

2. Understanding Non-Compete Enforceability

Assuming the language of the agreement would restrict you in your targeted job search, the next question is whether it is likely to be enforced against you. If it was signed on or after October 1, 2018, you should review the specific requirements of the Massachusetts Non Compete Act to see if your agreeement complies.

Even if it is an older agreement, or if it technically complies with the Act, there may be other reasons your agreement may not be enforced.

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3. Disclosing Your Non-Compete to Potential Employers

Should you proactively inform potential employers about your non-compete agreement? While some employers inquire about post-employment restrictions, there are compelling reasons to disclose it even when not asked. If you believe your non-compete could apply to the new opportunity, discussing it beforehand is usually advisable. This transparency allows you to gauge the new employer's willingness to hire you with the agreement's restrictions, preventing surprises after you've accepted the job and given notice at your previous workplace.

4. Seeking a Waiver of the Non-Compete

In some cases, prospective employers may condition a job offer on obtaining a waiver or release of your non-compete from your former employer. While this situation can be challenging, it's worth exploring your options.

You can initiate discussions with your former employer to request a waiver, especially if they don't perceive your new employer as a direct competitor. Sometimes, compromises can be reached, such as avoiding specific clients or limiting your role within the new company for a defined period.

However, if you encounter obstacles, it may be prudent to seek legal counsel to identify potential issues with the enforceability of your non-compete. Your attorney can help draft a persuasive letter to your former employer or collaborate with your new employer's legal team to mitigate their concerns about assuming risk. As a last resort, you can initiate legal action to obtain a declaratory judgment on the non-compete's enforceability, though this option typically involves costly litigation.

How Our Non Compete Lawyers Can Help

Navigating non-compete agreements during a job search can be complex, but understanding your rights and options is crucial. We're here to help. You can use the button below to schedule a free information call, or call us at (781) 784-2322.

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