How to enforce non compete clause?

Pizza Shop Talk The Think Tank
1

I had 2 employees quit and take jibs at a competitor. They both signed a document that they can’t work for a competitor within 20 miles for 1 year. Is there a way I can enforce it without involving my lawyers? Is it worth it?

2

You can try to scare 'em with a lawyer letter, but unless you are willing to go through with the whole enchilada, I don’t think it will change the situation.

3

Most non-competes are not worth the paper they are written on. Have you talked with your own lawyer and asked what (if any) recourse you have?

Also, what is the point of the non-compete? Why do you care if they work for your competitor?

4

We care about our non competes, becouse we are reletively new to the market and are killing it. we are somewhat gunshy of other owners in our area getting a better idea of what we are doing and jumping on the same band wagon. If they did it would probably sink most if not all of us.

5

What state are you in? The laws, and effectiveness of the non-compete agreement vary by state.

Chances are, irrelevant of where you live, the courts would rule that 20 miles is excessive. How many of your customers come from greater than say 10 miles away? If you are anywhere near a big city that number is always a very small percentage.

6

You are killing the market but if an employee tells one of your competitors who does the same they’ll sink you??? - trust me it won’t be long (employees leaving or not) until they find out ‘whatever it is your doing which is soooo different’ so if your business is that fragile maybe worth seeing the lawyer about winding the business up at the same time :?

7

Likely completely unenforceable.
The only thing you would probably be able to do would be to file criminal charges if they STEAL something that is clearly yours to bring to the competitor - like a customer list, or MAYBE a recipe.
Other than that, you aren’t likely to stop them at all. And even if they were scared and quit…
a) Too late - they already did what you’re afraid of them doing
and
b) Your secrets won’t probably stay secret too long.

Don’t you think you can do YOUR thing BETTER than anyone else? If they try to copy you…it’s a copy. Not the original.

Final thoughts:

  1. Don’t think you’ll keep some exclusive secret from the other guys
  2. Don’t think you still can’t kick butt