If 3 years ago I signed a non-compete agreement as a salesman but have since been moved into management with different duties, does the agreement carry over to this new position?

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If 3 years ago I signed a non-compete agreement as a salesman but have since been moved into management with different duties, does the agreement carry over to this new position?

About 10 months ago, I was informed the company was changing their business strategy and eliminating direct salesman in my state. I was being moved into a management position and would now have a completely different role. My compensation was also changed and now I make less than I did when in sales and involves about 40% of overnight travel. I did not travel at all in sales. I was not given any documentation except a new job description. I would like to look for a new in sales but need to know if my original non-compete carries over to the management position since the company completely changed my responsibilities and pay structure?

Asked on August 1, 2015 under Employment Labor Law, Illinois

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Since you are now in a management position with completely different duties than when you were in sales, the non-competitive agreement should no longer be in effect.  In addition, a non-competitive agreement has to be limited in time, scope, and proximity.  It cannot be for an indefinite duration of time.  If there isn't any time limit stated in the non-competitive agreement, that would be an issue for you to raise if anyone claims you are in violation of it by obtaining a new sales job three years after signing the agreement.  The non-competitive agreement also has to be limited in geographic proximity and cannot have an unlimited area in which you cannot compete.  For example, if it said 5 or 10 miles from your office location, that may be acceptable, but not 100 miles or omission of proximity altogether.

A court can limit the scope, proximity, and duration of a non-competitive agreement.

Since the position of direct salesman has been eliminated in your state, it would not serve any purpose for the company to try to enforce a non-competitive agreement for a salesman in your state. 

Therefore, the non-competitive agreement should no longer be applicable.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It depends on the terms of the non-competition agreement. If it simply states that you shall not compete with your employer without being more specific than that, it would still  be enforceable; in that instance, you would have agreed to not compete in any capacity. However, it is states that you will not compete in sales, as a salesman, etc. then it would no longer be relevant so long as you do not work as a salesman for a competitor...it may technically still be in force, but if your inability to compete was limited to competing as a salesman, then if you don't compete in that capacity, you are not violating the agreement.


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