I have recently left my employer of 8 years to start my own company in the same field employee benefit planning & health insurance. I partnered with a guy in town who has a established business of of over 20+ years doing property & casualty insurance. My former employer was locally owned for the first 6 years of my employement and then they sold to a corporation who is part of a larger corporation and then part of a holding company( basically a really big outfit). I had originally signed a no compete back when I started with the local owners some 8 years ago and it stated that I was not to solicit any existing cleints. When this new corp took over they had us sales people sign new contratcs and we have to sign them each year. They give them to us and tell us we have to sign them right away or find a new job so we are given 1-2 days to make our decision or we are out on the street. In this new contract it states that for 2 years from date of termination I can not divert, take away, or accept business from any of the employers clients that were included in my book of business.
When I left I offered to buy my book of business from them. in my contract it stated I had the right to purchase my book at 2 times the commissions. When we discussed this I was told I could only buy a portion of the book of which I asked is the price flexible. They told me there price and I offered what I would pay to make a long story short we did not agree on the numbers so I left without my book and decided I would start over again. My question is I'm having a great deal of those old clients calling me and wanting to move over, of which I'm not soliciting an anyway. Can I accept these clients?
There is an Erisa act that states in it the consumer has the right to choose who they wish to deal with as an advisor or consultant and this act superceeds all state, corporate, and private no compete contracts. I'm having an attorney review the contract now, however I wanted another opinion on it aswell. This same corporation has a reputation of trying to bully former employees out of business or run them out of state. I know they've been in trouble for unfair practices towards some former staff and got backed down. Let me know what you think.
When I left I offered to buy my book of business from them. in my contract it stated I had the right to purchase my book at 2 times the commissions. When we discussed this I was told I could only buy a portion of the book of which I asked is the price flexible. They told me there price and I offered what I would pay to make a long story short we did not agree on the numbers so I left without my book and decided I would start over again. My question is I'm having a great deal of those old clients calling me and wanting to move over, of which I'm not soliciting an anyway. Can I accept these clients?
There is an Erisa act that states in it the consumer has the right to choose who they wish to deal with as an advisor or consultant and this act superceeds all state, corporate, and private no compete contracts. I'm having an attorney review the contract now, however I wanted another opinion on it aswell. This same corporation has a reputation of trying to bully former employees out of business or run them out of state. I know they've been in trouble for unfair practices towards some former staff and got backed down. Let me know what you think.
