Legal question bout non-compete contract

[Waveraider]

Well. I got fired on Friday. Yea, Happy Labor Day. Anyway, my former Boss said that if I signed a non-compete contract keeping me from working in my field for 2 years, I would get 2 weeks severance pay and he would not fight my unemployment. That's a pretty lopsided contract. He also had a co-worker present to witness this. My question is, is this legal to begin with? Sounded like extortion. Thanks, and I can use any advise I can get.

 

[Kirk Freeman]

Non-compete clauses in Indiana have been subject to substantial changes recently. It is within your best interest to speak to a employment law attorney before you do anything else.

 

[SSGSAD]

I am NOT a lawyer, but I have NEVER heard of this.....

When I worked repairing Copiers, they made us sign a 2 year non compete, because they didn't want to "train" us, at their expense, and then have us go to work somewhere else .....

 

[Brandon]

None of this is legal advise:
I'd get another job in the field if that is what you want to do. I'd not advertise it on social media or through old co-workers.

If all I were getting was a 2 week pay check out of it I wouldn't sign it and find me another job.

 

[Harleyrider_50]

Well. I got fired on Friday. Yea, Happy Labor Day. Anyway, my former Boss said that if I signed a non-compete contract keeping me from working in my field for 2 years, I would get 2 weeks severance pay and he would not fight my unemployment. That's a pretty lopsided contract. He also had a co-worker present to witness this. My question is, is this legal to begin with? Sounded like extortion. Thanks, and I can use any advise I can get.

YUP.....it IS......tell'im ta shove the NC paper in his azz.....

unemployment-wise......pizz on'im.....you'a eventually git it anyways.....although he CAN be a dik 'bout it......

 

[CZB1962]

I am in no way a lawyer and I suggest you speak with one but I am pretty sure that they cannot fight your unemployment unless you were dismissed due to cause. If that "cause" was performance related, then it seems to me as a lay person that it would be hard to argue that you are both incompetent and yet still a competition threat.

Where I am going with this has more to do with them trying to fight your unemployment. If they try to say you did not do your job, then I think the fact that they want you to sign a non-compete negates that argument. If you were let go due to attendance then they can argues something like that.

 

[shootamc58]

Get a job in your field. Tell them to pound it. They can't deny you the right to provide for your family. The money they would spend to sue you isn't worth their time. Imagine how a jury or judge would look at it. Big bad company trying to tell lowly employee that was fired he can't provide for his family. None of this is legal advice, but unless you worked on proprietary material and literally took that info or product to a similar business that before you had no record of such info or product I'd say they won't go after you. That being said, NEVER sign one of these in an "at will" work environment. I had an employer try and get me to sign one of those several years ago. I laughed and said I would as long as they gave me a contract to guarantee my income. Needless to say, they didn't press the issue and I left shortly after to find a company that didn't try to hold their employees hostage in fear of loss of employment.

 

[Leonard_Lawrence]

This link may be of interest to you. It is about a 10+ year legal battle regarding non-compete/solicitation that occurred in Indiana.
http:// www.in.gov/judiciary/opinions/pdf/04141502jgb.pdf

 

[eldirector]

Not 100% on legalities.... But, my employer had folks sign a non-compete when they let some folks go. Word was, it was not enforceable, since THEY fired the employees. If they had quit, it MIGHT be different.

Sign it, collect your severance, and start job hunting the same day.

 

[churchmouse]

Not 100% on legalities.... But, my employer had folks sign a non-compete when they let some folks go. Word was, it was not enforceable, since THEY fired the employees. If they had quit, it MIGHT be different.

Sign it, collect your severance, and start job hunting the same day.

This. I have signed 2 in my life and both were just ink on paper.

Now, this was a while back of course but that is how it worked out.

 

[Fargo]

Sign it, collect your severance, and start job hunting the same day.

Before you sign a contract you intend to breach, PLEASE TALK TO A LAWYER FIRST.

 

[CHCRandy]

Why would you try to get them to sign when you fired them? I would think you would sign a no compete before being hired? That's like me hiring a sub and asking for proof of insurance and a W-9 after I paid them.......you get that before you hire and pay em or you have no leverage to get it.

I wouldnt sign it for 2 weeks of pay....no way in hell! If he wants to pay me 2 YEARS of severance.......I would then sign it.

Just my opinion.....

I have a great non compete lawsuit story.......but I don't want to hijack this thread with it.

 

[wtfd661]

Non-compete clauses in Indiana have been subject to substantial changes recently. It is within your best interest to speak to a employment law attorney before you do anything else.

This is the advice I would go with.

 

[GunSlinger]

It's because of situations like yours that new business/opportunities are born. If you can start your own company let what he did to you be the motivation to run his butt into the ground. I've seen it happen more then once.

 

[Waveraider]

Thanks for all of the replies. I just took my dog for a walk to clear my head. How much would it cost me to talk to an Employment Law Attorney?

 

[singlesix]

Here is another case:

Labor & Employment Law Alert - Indiana Court of Appeals Refuses to Enforce Terms of Non-Compete Agreement | News | Barnes & Thornburg LLP

 

[Brandon]

Isn't there a walk in Wednesday lawyer for free? Not sure what kind of law they do but it may be worth a google.

 

[Cameramonkey]

IANAL but from my understanding, non competes are typically only enforceable at VERY high levels of management or if you possess in your noggin trade secrets that you could use to benefit your new company against the old.

For instance, the exec who knew the secret to the "nooks and crannies" in Thomas' English muffins. HIS non compete was found to be enforceable. However if he were just the guy on the plant floor dumping the ingredients into the mixers or a sales guy it would not have been enforceable.

But yes, if you are privvy to secrets that you could use to shift the balance of power from your old boss to your new boss, talk to an attorney. If not, go get another job and dont worry about it. (just wait until you have your last check and unemployment has been granted )

 

[WebSnyper]

Seems like signing the non compete under duress (when being fired) would not be enforceable, but one of the legal types will come around soon I'm sure. Seems like a non compete would be signed when hired, as others have said, to keep you from leaving on your own with the entire client list.

 

[PistolBob]

All that for 2 weeks pay? No WAY. He doesn't have you on a non complete now, go to work for the competition if you want to. Are you planning on going on unemployment? Are your skills specialized?