I have a question regarding a non-competition clause. Manager. At will and hourly. I was previously employed by Frenzr,

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Customer: I have a question regarding a non-competition clause
JA: Was the non-compete agreement discussed with a manager or HR? Or with a lawyer?
Customer: manager
JA: Is the workplace "at will" or union? Is the job hourly or salaried?
Customer: at will and hourly
JA: Anything else you want the Lawyer to know before I connect you?
Customer: I was previously employed by Frenzr, a social media agency, for almost a year. About a month ago they decided to close my position because of shortage of work because of COVID.I recently started promoting my services as photographer and for social media management. However, Frenzr reached out to me telling me I have to stop all activity because of a non-competition clause in our contract.I would like to know how can I work this out?
Answered by ToLawyer in 3 mins 2 years ago
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ToLawyer, Expert

Hi, my name is***** would be happy to assist you. Before we begin, please note that this discussion is for providing general information only, it is not detailed or necessary specific legal advice, and it is only for the purpose of helping you understand the nature of your situation from a legal standpoint and to discuss options. You should engage a lawyer/paralegal in your local jurisdiction if you wish to take any legal action going forward.

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Customer
Great. Unstestood.
Customer
Understood
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ToLawyer, Expert

A non-compete is difficult to enforce and must be reasonable. What is the time and distance of the non-compete? It should be worded something along the lines of "you shall not offer services that are in direct competition with the company for the next ___ months/years within _____distance (kms/province-wide/country wide)

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ToLawyer, Expert

The more onus the non-compete, the less likely it will be enforced. So the above question is really important.

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ToLawyer, Expert

In addition, is there a non-solicitation in your contract? i.e., you cannot solicit any clients of Frenzr for xyz amount of time.

Customer
Should I answer by text here or by email?
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ToLawyer, Expert

Hmm, I am on the web platform so I see whatever you text regardless. So, whatever is more convenient for you I suppose.

Customer
Ok. This is everything stated in the clause.
Customer
File attached (LM7P1TT)
Customer
File attached (V1LQ461)
Customer
Here is the complete contract too
Customer
I would also like to mention that I was hired as an Account Manager (which is not a big role) for less than a year for full time. However, I only lasted full-time for a month because when covid started they asked the 3 employees that worked there (including me) to work part-time. Which was suppose to be a temporary situation but never changed.
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ToLawyer, Expert

Hmm. Well here is the thing, you are in direct violation of your non-compete. But I am not sure how enforceable that non-compete actually is. You are not using their clout to advertise your services nor were they using yours. 1 year of no work is financially devastating for you whereas there would be minimal effect on them. Finally, the non-solicitation clause should already be sufficient to protect their interests.

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ToLawyer, Expert

Unfortunately, only the courts can make a determination on this though, and the question is whether you are willing to risk it, ignore them, and continue doing what you are doing.

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ToLawyer, Expert

Did a lawyer send that to you or is it an employee? Are you soliciting their clients or did you simply "put yourself out there" and see who comes your way?

Customer
What would be the worst-case scenario if I decide to risk it and continue?
Customer
An employee sent this to me
Customer
I just "put myself out there". I am not soliciting their clients.
Customer
Can you explain me your last statement? "Finally, the non-solicitation clause should already be sufficient to protect their interests."
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ToLawyer, Expert

Well, the worst-case scenario is that they will sue you for breach of the non-compete and seek damages for the money they have lost due to your competitive behaviour. Basically the client they COULD have gotten but for you taking them away.

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ToLawyer, Expert

Sure, the non-solicitation and non-compete are two sides of the same coin. Non-solicitation stops internal talent and clients from being taken away, where as non-compete stops potential business from taken away.

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ToLawyer, Expert

Sometimes a judge will determine that a non-solicitation already protects the business enough, and invalidates the entirety of the non-compete.

Customer
Ok. Thanks. If I have any other questions can I still send them to you here?
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ToLawyer, Expert

I believe so, unfortunately, I am a web user like yourself, I don't quite know what happens to the question after it is marked as completed.

Customer
ok thanks!
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ToLawyer, Expert

You are welcome, good luck.

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