Wednesday, July 23, 2008 | 9:18 p.m.

At Work by Lindsey Novak

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Lindsey Novak

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Noncompete Agreements: Understand the Document so You Feel Secure About Signing It

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Q: I am a marketing and executive assistant with a site development company. I agreed to sign a noncompete agreement on my hire and was asked to sign it again when I was let go. It required me not to share any of the company's marketing strategies and company procedures. I was let go because of the economic conditions. The company also got rid of four other administrative positions and 42 field jobs. I was to receive four weeks' severance pay. Within a week, I got an interview with the company's major competitor, and I was very careful not to say anything about their marketing plans; I simply talked about my job responsibilities. It was no different from how a job description would read. I don't know how my company found out, but human resources called me and said I violated the noncompete agreement in my interview. I was asked to come in to talk with them, and they said they would cite my violation. I have no clue as to what they are accusing me of, but the company is withholding my severance pay. I feel as if they are bullying me, and I don't want to have to go back there to talk to them.

A: Even though a person has read a required noncompete agreement, it is worth having a lawyer review it before signing. If a company resists allowing for time to have it reviewed, that rush for one's signature should raise a warning flag about the company.

According to Brent S. Silverman of the Cleveland law firm Reminger: "The only general requirement to enforce a noncompetition agreement is that the conditions be 'reasonable.' One must prove that the agreement is 1) no greater than what is required for the employer's protection; 2) does not impose undue hardship on the employee; and 3) is not harmful to the public."

Courts consider many factors when determining whether an agreement is reasonable and enforceable, and they can modify it if it is found to be unreasonable.
Silverman says that protecting trade secrets and confidential information is often included and enforceable in these agreements, but confidential information does not include general knowledge of the business operation that is known already to competitors or information that is readily ascertainable elsewhere. On an employee's termination, that employee is entitled to use the experience, knowledge, memory and skill obtained during that employment.

Silverman says it is likely that your agreement does not prohibit you from working for a competitor, but does prohibit you from disclosing confidential and trade secret information. He advises writing a letter stating you are aware of your obligations under the noncompetition agreement and that you will not violate its terms and conditions.

I find it interesting that the company wants you to come in so human resources can cite you your violations rather than putting it in writing. Perhaps they are bullying you to get out of paying your promised severance.

Please send your questions to: Lindsey Novak, c/o Creators Syndicate, 5777 W. Century Blvd., Suite 700, Los Angeles, CA 90045. E-mail her at LindseyNovak@yahoo.com, or visit her Web site at www.LindseyNovak.com. To find out more about Lindsey Novak and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.

COPYRIGHT 2008 CREATORS SYNDICATE INC.




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Originally Published on Thursday May 22, 2008

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