Non-compete agreement after long term employment

[jklmer]

Good Morning,

I have worked for a federal contractor for several years and today they handed everyone in the company a non-compete agreement. I have already applied for several other positions outside this company doing similar work, but interviews have not yet been held. Would they be able to enforce this agreement on those applications that were sent before the agreement was in place?

Thank you for you assistance.

 

[army judge]

Good Morning,

I have worked for a federal contractor for several years and today they handed everyone in the company a non-compete agreement. I have already applied for several other positions outside this company doing similar work, but interviews have not yet been held. Would they be able to enforce this agreement on those applications that were sent before the agreement was in place?

Thank you for you assistance.

Without reading the covenant, there's no way any of us could know.
If you haven't signed the covenant, it might very well be unenforceable.
Generally those agreements aren't meant to keep someone from earning a living.
The covenants often become contentious subjects IF an employee or contractor were to be discovered poaching their clients, or other talent for a competitor.
I suggest if you're worried, consult a NM licensed attorney, unless the contract you are working under limits disputes to another state.
Either way, seeing a NM attorney with your employment contract and the non-compete will get you a more personalized answer.
If not a big shot, muckity muck, more than likely the non-compete will never impact you.
If you were a high level muckity muck, you probably wouldn't be seeking advice over the internet, you'd have made a call to your attorney on retainer.

 

[Michael Wechsler]

I have worked for a federal contractor for several years and today they handed everyone in the company a non-compete agreement. I have already applied for several other positions outside this company doing similar work, but interviews have not yet been held. Would they be able to enforce this agreement on those applications that were sent before the agreement was in place?

Army judge is right on track in saying that we cannot tell you any specific answer or opinion without a full review of the entire agreement. In general, we only provide guidance anyway.

Having been involved with these often, my guess would be that the answer would be that it could make life difficult for you and that "an interview" means nothing. If you're seriously considering leaving, you may want to tell the company that you need a few days for your attorney to review the agreement before you can sign it. When you are about to receive an offer from a new employer they will almost always ask whether there is a non-compete agreement in place. They may choose not to deal with the possibility that your employer may take action, whether or not they have the right to do so.

If non-compete agreements are being handed out, you have to wonder what prompted it and whether the company may have learned the hard way. You will need to speak to an attorney and have them provide a full and proper consultation but I'm sure they will probably advise you to consider the possibilities raised here. Best of luck to you with your employment decisions.

 

[Betty3]

Under New Mexico case law, noncompetes are valid and enforceable if supported by sufficient consideration, if they're related to a legitimate business purpose, and if the time and space restrictions are no broader than what is reasonably required for the business interests that the agreement is designed to protect. The validity of time and space restrictions is determined on a case-by-case basis. Bowen v Carlsbad Ins. & Real Estate, Inc., 104 N.M. 514, 724 P.2d 223

You need to take the noncompete, as suggested, to a contract attorney in your area for review & advice.