I worked for 3rd party collection agencies from 1997 to 2005. In mid 2005 I took a job at a creditor managing a collection department. Recently i was laid off. I have been offered a job at a collection agency again and they want me to sign a non compete clause. This clause states i cannot work within 200 miles of any of their offices for a year after my employment ends with them. I'm going to paste a copy of the clause and remove the company name and my name. Can someone please tell me if I leave this collection agency would i still be able to go back to working for a creditor managing a collection department? Are they different enough since one is a collection agency and the other is an actual creditor?
Thanks for the help here is a copy of the clause I'm supposed to sign.
For good consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. CONFLICTING EMPLOYMENT: Employee agrees that during the time of his employment with Employer, he/she will not accept nor will he/she engage in employment, consulting or other business activity directly related to the business of the Employer.
2. NON-COMPETE: Following the termination of employment with Employer for any reason, Employee agrees not to engage directly or indirectly in any business substantially similar to or in competition with the business of the Employer, it successors or assigns for a period of 12 months within a radius of 200 miles of any of Employer's office locations.
For purposes of this agreement, engaging in "any business substantially similar to, or in competition with the business of Employer" shall mean: (i) engaging in a business as an owner, partner or agent; (ii) taking employment with a third party engaged in such business either as an employee, contractor or consultant; or (iii) soliciting customers for the benefit of a third party engaged in such business.
This provision and only this provision of the Non-Compete and Non-Solicitation Agreement will be waived if Company decides to terminate Employee's employment with Company without cause. "Cause" shall mean material dishonesty involving the Company or conviction of a crime involving moral turpitude.
3. NON-SOLICITATION OF CUSTOMERS: For a period of 24 months following the termination of employment with Employer for any reason, Employee agrees not to directly or indirectly induce, recruit or solicit any of Employer's clients or customers, whether potential or otherwise, with whom Employee had dealings with on behalf of Employer during his/her employment with Employer.
4. NON-SOLICITATION OF EMPLOYEES: Employee agrees that for a period of 24 months following the termination of his/her employment with Employer, Employee will not induce, recruit or solicit any of the Employer's employees to terminate their employment or enter into another employment arrangement with Employee or a third party.
5. CONFIDENTIALITY: Employee acknowledges that Employer shall or may, in reliance upon this Agreement, grant Employee access to Employer's confidential and proprietary information. Employee agrees to not disclose to any other person (unless required by law) or use for personal gain any such confidential or proprietary information at any time during or after the termination of employment, unless Employer grants express, written consent of such a disclosure.
6. CONTINUING OBLIGATIONS: Notwithstanding the termination of Employee for any reason, Sections 1, 2, 3, 4 and 5 of this Agreement will continue in full force and effect following such termination.
7. BINDING EFFECT: The covenants and conditions contained in the Agreement shall apply to and bind the Parties and the heirs, legal representatives, successors and permitted assigns of the Parties.
8. WAIVER: The failure of either party to enforce any provisions of this Agreement shall not be deemed a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.
9. SEVERABILITY: If any part or parts of this Agreement shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect. If any provision of this Agreement is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.
10. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Agreement. There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Agreement. This Agreement may be modified in writing and must be signed by both Employee and Employer.
Thanks for the help here is a copy of the clause I'm supposed to sign.
For good consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. CONFLICTING EMPLOYMENT: Employee agrees that during the time of his employment with Employer, he/she will not accept nor will he/she engage in employment, consulting or other business activity directly related to the business of the Employer.
2. NON-COMPETE: Following the termination of employment with Employer for any reason, Employee agrees not to engage directly or indirectly in any business substantially similar to or in competition with the business of the Employer, it successors or assigns for a period of 12 months within a radius of 200 miles of any of Employer's office locations.
For purposes of this agreement, engaging in "any business substantially similar to, or in competition with the business of Employer" shall mean: (i) engaging in a business as an owner, partner or agent; (ii) taking employment with a third party engaged in such business either as an employee, contractor or consultant; or (iii) soliciting customers for the benefit of a third party engaged in such business.
This provision and only this provision of the Non-Compete and Non-Solicitation Agreement will be waived if Company decides to terminate Employee's employment with Company without cause. "Cause" shall mean material dishonesty involving the Company or conviction of a crime involving moral turpitude.
3. NON-SOLICITATION OF CUSTOMERS: For a period of 24 months following the termination of employment with Employer for any reason, Employee agrees not to directly or indirectly induce, recruit or solicit any of Employer's clients or customers, whether potential or otherwise, with whom Employee had dealings with on behalf of Employer during his/her employment with Employer.
4. NON-SOLICITATION OF EMPLOYEES: Employee agrees that for a period of 24 months following the termination of his/her employment with Employer, Employee will not induce, recruit or solicit any of the Employer's employees to terminate their employment or enter into another employment arrangement with Employee or a third party.
5. CONFIDENTIALITY: Employee acknowledges that Employer shall or may, in reliance upon this Agreement, grant Employee access to Employer's confidential and proprietary information. Employee agrees to not disclose to any other person (unless required by law) or use for personal gain any such confidential or proprietary information at any time during or after the termination of employment, unless Employer grants express, written consent of such a disclosure.
6. CONTINUING OBLIGATIONS: Notwithstanding the termination of Employee for any reason, Sections 1, 2, 3, 4 and 5 of this Agreement will continue in full force and effect following such termination.
7. BINDING EFFECT: The covenants and conditions contained in the Agreement shall apply to and bind the Parties and the heirs, legal representatives, successors and permitted assigns of the Parties.
8. WAIVER: The failure of either party to enforce any provisions of this Agreement shall not be deemed a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.
9. SEVERABILITY: If any part or parts of this Agreement shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect. If any provision of this Agreement is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.
10. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Agreement. There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Agreement. This Agreement may be modified in writing and must be signed by both Employee and Employer.
