Non-compete agreement - true meaning?

J

Jerry Diamond

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Reading the following section "c" in a non-compete agreement, does it look like if my friend left that job, he would not be able to work in the same field for 18 months? In other words, what does this actually/practically prohibit him from doing?

c. During the term of this Agreement, and for a further period of 18 months beginning in the termination of Employee's employment with Company-X under any circumstances, Employee shall not within the geographical territory in which Company-X services or conducts business as proprietor, partner, joint venturer, stockholder, director, officer, trustee, principal, agent, servant, employee or in any capacity whatsoever, directly or indirectly, render services on behalf of a competitor of Company-X or any other third party in any capacity where Trade Secrets and/or Confidential Information would reasonably be considered to be useful to the competitor or to such other third party to become a competitor of Company-X
 
To understand what his/her non-compete implies, one shoud have it reviewed by an attorney BEFORE signing it.

It might not be enforceable, but to know for sure an attorney needs to review the document.
 
And What state it was signed in/under really matters.... other is not a state that counts...NCAs are state specific as are the interpretations

Also other parts of the agreement could matter like definitions..,

I suggest he take the whole agreement to a local employment attorney to review
 
It seems to be a non-compete but only to the extent that the employee uses information obtained from the former employer in competition with the former employer.

In other words, don't take a customer list from the former employer and don't solicit customers of the former employer. That's usually the main concern.

Read the following about non-competes in Indiana:

Indiana Non-competition Law | My Employment Lawyer
 
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