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Non Compete Question 5

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MTEng1

Structural
Jun 16, 2009
17
US
I started a new job about two months ago and did sign a non compete with my previous employer. My previous employer in Utah is fine with me working with the new employer, a company in California which does competing work, however, for different clients. Most non compete agreements in California are void anyway, from what I have read. Regardless, I was contacted by my previous employer that a client I used to work with wanted to talk to me. So, I was given the client's name and phone number and to call them.

The client said that he wanted me to do some work for him and that he did not feel that my previous employer had someone that could do this work. I told him that I had signed a non compete and would need to talk to my previous employer about it first.

Here is more of the perspective of my situation. I left my previous employer because he would not lay me off. I went for a few months behind pay and several months with not having much billable work. Although the official reason I had for leaving was "voluntary", it was not accurate. My previous employer is struggling financially and cannot hire someone to replace me. My question is: what can be done if a client is not satisfied with my previous employer's current staff?

Keep in mind I do not have intentions of working for this old client without discussing with my previous employer first. I'm just trying to sort out in my mind the best way to discuss it with him.

"Structural engineering is the art of modeling materials we do not wholly understand into shapes we cannot precisely analyse so as to withstand forces we cannot properly assess in such a way that the public at large has no reason to suspect the extent of our ignorance." -Dr. A. R. Dykes
 
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Doesn't sound to me like it was much of a competition. You didn't seek the client or compete for their business. Also, the UT employer facilitated the client reaching you. If they thought it would be wrong for you to work with the client, why would they have just sent him to you?

-- MechEng2005
 
Thanks MechEng, that seems to put my situation in perspective.

"Structural engineering is the art of modeling materials we do not wholly understand into shapes we cannot precisely analyse so as to withstand forces we cannot properly assess in such a way that the public at large has no reason to suspect the extent of our ignorance." -Dr. A. R. Dykes
 
I would make sure that I kept copies of any communications between your old employer and you about the client (if only a phone log). I figure once the old employee suggested contacting him, he has released that business. I'd just act on that assumption.

David
 
You are asking a bunch of engineers a legal question... Call your lawyer. He needs billable hours too.
 
On a side note, just because non-compete clauses are not legal in CA does not mean that law is applicable to the one you signed while living/working in UT. Just be aware...

Dan - Owner
Footwell%20Animation%20Tiny.gif
 
MikeTheEngineer,
That's usually my line. I like your post better than mine, I guess everyone gets carried away sometimes.



David Simpson, PE
MuleShoe Engineering
Please see FAQ731-376 for tips on how to make the best use of Eng-Tips Fora.

"It is always a poor idea to ask your Bridge Club for medical advice or a collection of geek engineers for legal advice"
 
And my opinion is worth exactly what you are paying for it... na-da, nothing, zilch, zero....
 
Actually, I've been working. But now I will knock that crap off.

David
 
The question may have been about ethics as well as legality.

It is a bit of a moral dilema.

My advice.

First make sure you stay within the law and that will probably require legal advice.

First be straight up with your old employer.

Is it possible if you bring this work to your new employer that he might pay your old employer some sort of referral fee so everyone earns a bit. After all, it is work your new boss would otherwise not have.

Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &
for site rules
 
I would agree, talk to a lawyer. Probably a lawyer can give you a quick opinion without costing you a lot. Get your new boss on board to pay for the lawyer as he is the one that will benefit the most with the new client.

In the future, be more proactive in documenting non-payment of wages (like filing a complaint with the State agency that has jurisdiction or with the DOL). Employment agreement is a contract between 2 parties and your non-compete is part of that contract. I believe (just my opinion as I'm not a lawyer) that non-payment of wages constitute a breach of contract so your non-compete is actually null and void anywhere (not just in CA) if you have the paper trail to prove non-payment.
 
Thanks Mike, Pat and RacingAZ,

I will follow your advice.

"Structural engineering is the art of modeling materials we do not wholly understand into shapes we cannot precisely analyse so as to withstand forces we cannot properly assess in such a way that the public at large has no reason to suspect the extent of our ignorance." -Dr. A. R. Dykes
 
HAhaha, Miketheengineer gets a pink star for that one.

Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East -
 
This does not warrant the heavy artillery of legal advice. Just e-mail your previous employer, ask him if there is a problem, that you assume it was okay since he forwarded the fellow to you, and document the response. Throwing a lawyer into the mix could exasperate a simple understanding.

Regarding going after lost wages, there are many arrangements for employment that could lead to lack of pay. From the description you gave, it seems like your previous employer might be an honorable man that fell upon hard times and probably had an understanding that you would get paid for billable work. Once again this could be exasperated by overly rigorous expectations. I use contract help often, and it is clear to all involved that prosper and suffer together.
 
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