Non-compete And The Ban
I am curious if someone can enlighten me on the topic of Non-compete agreements.
I have met with a potential new outside sales person for our company. However, they are currently employed by another co. in the same industry. The company he is currently working for is Headquarters is in NY. He lives in a different state (MO), and our business is in the state of Missouri. He signed a non-compete that says he cannot work for anyone else in the industry for 1 year. He is currently employed with the other company as outside sales. I reviewed this document he signed, and it looks to be from legal zoom, and they lump non-competition, non-solicitation, and non-disclosure agreement into one document.
I am amazed that people would sign these, and that they can actually hold weight in court? Especially for someone that is not a high-level decision maker within an organization.
Can his former employer come after our us and sue, would they actually win in court?
I am aware of the FTC ban on non-competes, but that doesn't take into effect 120 days after the judgement. Also hasn't lawsuits been filed against this ban already? Which will delay this new ban?
I am just curious if this issue makes the water muddy for someone to win in court on this?
I had read that the state of NY was very close to banning non-competes last year, but it was vetoed by the Gov. Hochul. Looks like it's going back in for approval this year though.
Any advice or input would be greatly appreciated.
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