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Hi Everyone,
I recently found myself laid off with a number of employees from a small Hardware / SaaS company based in North Carolina (Company is Registered in Delaware), where I worked for a several years in various roles. I started as a low level support representative and eventually transitioned into a full product management role, where I was responsible for managing a specific compliance-related service that our customers needed. My job involved consulting with customers to help them optimize this service, but I wasnât involved in direct sales or solicitation.
Now that I am on my own due to their financial mismanagement, Iâm considering starting my own consulting business, however Iâm facing some concerns due to the non-compete, non-solicitation, and confidentiality agreements I signed when I started with the company and how enforceable these clauses actually are given they have no geographic scope
"(a) Employees, Consultants. I agree that during the term of the Relationship, and for a period of twelve (12) months immediately following the termination of the Relationship for any reason, whether with or without cause, I shall not, directly or indirectly, solicit, induce, recruit or encourage any of the Companyâs employees or consultants to terminate their relationship with the Company, or attempt to solicit, induce, recruit, encourage or take away employees or consultants of the Company, either for myself or for any other person or entity.
(b) Other Parties. I agree that during the term of the Relationship, I will not negatively influence any of the Companyâs clients, licensors, licensees or customers from purchasing Company products or services or solicit or influence or attempt to influence any client, licensor, licensee, customer or other person either directly or indirectly, to direct any purchase of products and/or services to any person, firm, corporation, institution or other entity in competition with the business of the Company. In addition, I acknowledge that the Company has valuable Trade Secrets (as defined by applicable law from time to time) to which I will have access during the term of the Relationship. I understand that the Company intends to vigorously pursue its rights under applicable law if, during a period of twelve (12) months immediately following the termination of the Relationship for any reason, whether with or without cause, I solicit or influence or attempt to influence any client, licensor, licensee, customer or other person either directly or indirectly, to direct any purchase of products and/or services to any person, firm, corporation, institution or other entity in competition with the business of the Company. Thereafter, the Company intends to vigorously pursue its rights under applicable law as the circumstances warrant.
(c) Unfair Competition. I agree that during the term of my employment in the Company and for a period of twelve (12) months thereafter, I shall not engage, establish, open or in any manner whatsoever become involved, directly or indirectly, either as an employee, owner, partner, agent, shareholder, director, consultant or otherwise, in any business, occupation, work or any other activity which competes or is reasonably likely to compete with the Company or of any of its, parent subsidiary or affiliated companies."
The product I managed was just one part of our customers' overall compliance needs, but the main product offering from my former employer is something that most companies in the industry have tried at least once and it is nationwide. This makes it difficult to determine who qualifies as a "client," especially if those companies no longer do business with my former employer. I do not plan on using any proprietary information, client lists, or other knowledge -- everything will be built with public information and the conversations I have.
In my consulting business, Iâm not looking to create a competing product or take customers away from my former employer. Instead, I want to help clients navigate the often confusing technology landscapeâassisting them in âshopping aroundâ for the best rates and services from various companies, including my former employer and its competitors. Many companies in our industry do offer internal consulting, but they tend to push only their own solutions, which can leave customers feeling confused about which option is truly the best fitâespecially since many arenât particularly tech-savvy. My goal is to provide unbiased guidance to help clients make informed decisions based on their specific needs.
In fact, Iâm even open to working with my former employer and driving business their way if they meet the clientâs requirements and offer the best solution for their needs. My focus is on ensuring that my clients get the best possible service, even if that means recommending my former employerâs products and services.
Iâm currently reaching out to local lawyers for legal advice, but I also wanted to see if anyone here has had a similar experience. How did you navigate these non-solicitation and non-compete clauses while trying to move forward with your own business? Any advice, insights, or personal experiences you could share would be incredibly valuable.
Thanks so much for your time and advice!
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