First, I’ll start by saying I have a very unique work/employment arrangement. I’m sorry for being cryptic.
Also, this is long so you TLDR types might not want to read.
I have my own business that serves a very unique segment of a niche.
I also work for a company that serves the larger niche, but not the segment, in a more general way. I found a way to capture revenue in a very automated fashion that the company said they didn’t have any interest in.
We signed an employment agreement that allowed me to form this business as a carveout from the company non-compete. There were some handcuffs attached and concessions I had to make, but they made it agreeable for both parties.
The company operates in about 5 states. My business has exploded in the last six months and we operate in 20 plus now. My clients in these other states want what the company provides, but they refuse to expand to those states, even though there is virtually no barrier to their entry.
In my (and my company’s)non-compete and employment agreement, it specifically states that my company can’t engage in competitive activity in states where they operate or within 100 miles of their office. I spent a small fortune with an employment law attorney when we negotiated it last year and it’s perfectly fine for me to do in California what they will only do in GA and surrounding states.
Today I asked them to consider expanding operations in other states where we could both make money and they said “Nope. No interest.” So I said, “Well, I’ll just start operating my business in the capacity you operate in locally.”
They responded it would be a violation of the non-compete. To which I responded that the non-compete only applies in states where they operate and within 100 miles of their office - mind you their attorney wrote this. We also had them agree to modify the clause in the contract so that it doesn’t restrict me from a “side-hustle” so long as certain thresholds are met monthly on their side. Basically, if I can meet their requirement in 1 hour of work monthly, that’s all they want.
Then one owner replied verbatim, “Well, I’d be pissed if you did that.” I then said, “So this 5 state non-compete is really a 50 state non-compete? Is that what I’m understanding?”
What would you do? And yes, I’m fully aware that they’ll make up some bogus shit to fire me and enforce my non-compete in GA, NC, TN, SC, AL if I do it anyway. Any advice?
Also, this is long so you TLDR types might not want to read.
I have my own business that serves a very unique segment of a niche.
I also work for a company that serves the larger niche, but not the segment, in a more general way. I found a way to capture revenue in a very automated fashion that the company said they didn’t have any interest in.
We signed an employment agreement that allowed me to form this business as a carveout from the company non-compete. There were some handcuffs attached and concessions I had to make, but they made it agreeable for both parties.
The company operates in about 5 states. My business has exploded in the last six months and we operate in 20 plus now. My clients in these other states want what the company provides, but they refuse to expand to those states, even though there is virtually no barrier to their entry.
In my (and my company’s)non-compete and employment agreement, it specifically states that my company can’t engage in competitive activity in states where they operate or within 100 miles of their office. I spent a small fortune with an employment law attorney when we negotiated it last year and it’s perfectly fine for me to do in California what they will only do in GA and surrounding states.
Today I asked them to consider expanding operations in other states where we could both make money and they said “Nope. No interest.” So I said, “Well, I’ll just start operating my business in the capacity you operate in locally.”
They responded it would be a violation of the non-compete. To which I responded that the non-compete only applies in states where they operate and within 100 miles of their office - mind you their attorney wrote this. We also had them agree to modify the clause in the contract so that it doesn’t restrict me from a “side-hustle” so long as certain thresholds are met monthly on their side. Basically, if I can meet their requirement in 1 hour of work monthly, that’s all they want.
Then one owner replied verbatim, “Well, I’d be pissed if you did that.” I then said, “So this 5 state non-compete is really a 50 state non-compete? Is that what I’m understanding?”
What would you do? And yes, I’m fully aware that they’ll make up some bogus shit to fire me and enforce my non-compete in GA, NC, TN, SC, AL if I do it anyway. Any advice?
