Engineering Confidentiality Agreement

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sleatmc

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My husband works for an automotive engineering company here in Detroit, MI. He had worked for them for 9 years when the company was bought out two years ago, by a firm in CA. The new employer made all existing employees sign a new no-compete and confidentiality agreement that states that employees can not work for a competing company for one year after either leaving or being let go. My husband has just been offered a job with a great company in another state and the position will be working on a product that is NOT in competition with his current job. The problem is the confidentiality agreement. The wording of the agreement is so broad and all encompassing that it pretty much prevents my husband working in engineering for any other company for one full year after he leaves. The wording of the agreement states that any engineering knowledge or experience gained, terminology or information of engineering principles gained through employment with this CA company, which is not public information, is classed as their property. Since my husband has been an engineer for the past 30 years, this is the only industry he has ever worked in. Of course he has gained experience in new areas while working on different products, but how is he supposed to leave experience and knowledge with his current employer and not take it forward with him in his career advancement? Can this agreement hold up in a court of law? This is now being reviewed by the new potential employer and may result in the offer being rescinded. They obviously don't want a law suit. Is there anything we can do to have the wording changed on the confidentiality agreement?
 
What did they say when your husband asked them if they would change the wording on the confidentiality agreement?
 
Has your husband had the agreeement reviewed by an attorney to see if it's enforceable? Sometimes they're not, if they're too broad.
 
No, my husband has not yet asked his current employer to change the wording of the confidentiality agreement. He is waiting to hear back from the company he interviewed with, as they are having their lawyers look over it. If they rescind the offer of employment, based on this issue, then my husband will hire an attorney to review the document and help with the request to have the wording changed. If the potential employer decides not to hire my husband then this will be the second employment opportunity he has lost due to the agreement.
 
sleatmc said:
My husband works for an automotive engineering company here in Detroit, MI. He had worked for them for 9 years when the company was bought out two years ago, by a firm in CA. The new employer made all existing employees sign a new no-compete and confidentiality agreement that states that employees can not work for a competing company for one year after either leaving or being let go. My husband has just been offered a job with a great company in another state and the position will be working on a product that is NOT in competition with his current job. The problem is the confidentiality agreement. The wording of the agreement is so broad and all encompassing that it pretty much prevents my husband working in engineering for any other company for one full year after he leaves. The wording of the agreement states that any engineering knowledge or experience gained, terminology or information of engineering principles gained through employment with this CA company, which is not public information, is classed as their property. Since my husband has been an engineer for the past 30 years, this is the only industry he has ever worked in. Of course he has gained experience in new areas while working on different products, but how is he supposed to leave experience and knowledge with his current employer and not take it forward with him in his career advancement? Can this agreement hold up in a court of law? This is now being reviewed by the new potential employer and may result in the offer being rescinded. They obviously don't want a law suit. Is there anything we can do to have the wording changed on the confidentiality agreement?
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You can't do anything to change the wording on the agreement.
However, if it is as broad as you represent, it is unenforceable as a matter of law.

What consideration has your hubby been offered to make this an enforceable Confidentiality Agreement?
(Usually contracts must have consideration to be binding and enforceable, with a few limited exceptions).

This agreement sounds too broad to be enforceable. Rather than protecting the employer's proprietary information and product line, it has deprived your husband to the right to pursue his profession of 30 years. This can be proved up by the loss of one opportunity and the pending loss of another. Courts don't like to see this. It isn't protecting the employer, it is inhibiting your husband's ability to earn a living. I suggest you speak with an attorney about this. There are remedies against what this former employer is doing to your husband.

California has legislation that addresses broad and harmful agreements to individuals such as your hubby. I'm surprised it wasn't addressed during the pursuit of the California position.


Noncompete Agreements Void In California.
California Business and Professions Code Section 16600 provides: "Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." Link. The enumerated, narrow exceptions are: (a) sale of a business, (b) partnership dissolution, and (c) disassociation of a partner. Link. Additional information on California Noncompetes.

http://www.medlawplus.com/library/legal/confidentiality.htm
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Dear Army Judge,

Thank you for the great advice. My husband heard back from the new employer and they have drawn up an offer of employment stipulating that the position offered will not be in violation of his non compete agreement with his current employer. The verbage in the offer will provide some protection to both themselves and my husband if his current employer tries to file a non compete lawsuit. We went to the website of the link you provided and have printed out the information pertaining to the confidentiality agreement. My husband will take this with him when he gives his notice next week. One thing we noticed on his current confidentiality agreement is that the agreement is geographically confined to Wisconsin and Michigan operations only. It also states, 'This agreement shall be governed by the laws of the State of Wisconsin' at the bottom of the agreement. The new position offered to my husband is in Massachusetts, so this may be a loophole.

Thanks again for your input, we are now ready to move ahead with my husband's acceptance of this new opportunity.
 
Hey, sleatmc, that is great news! I love it when people get jobs and pay taxes. You guys gotta keep funding my sweet army pension and my social security. I guess I don't have to eat dog food next month!!! :)

Good luck to him and the family.
 
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