A non-compete contract says I can not work for a competitor for 2 years. What happens if I do?

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A non-compete contract says I can not work for a competitor for 2 years. What happens if I do?

I own a LLC called ‘Just4u Services’. ‘Just4u Services’ has been hired as a
subcontractor to do work for a company called ‘Campaign me quickly’. Just4u
Services has been subcontracting for them for 3 years now. Today I received a No
Compete contract stating ‘Employee will not work with, for, or have any interest
in, any organization that competes with the Company for 2 years after employment
within the United States.’ If I sign this, Does this mean that the LLC can not
compete or does that mean that I Lisa can not compete. Also, If I did compete
can anything happen to me personally? Could I create another LLC if need be? I
live in Florida and the LLC was created in Florida by the way and the company is
out of California. I don’t intend on losing this account but I would like to
know the legalities before I sign. Thanks

Asked on February 15, 2017 under Employment Labor Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you sign, you will have agreed to not compete--whether in your own name, through an LLC you own, or working for someone else's company or business--for two years; and to also not have any ownership or controlling interest in any business (including an LLC) which competes. So you would be very broadly giving up the right to compete. If you do compete, you could be sued: the other side (the one who gave you the non-compete) could sue you for a court order barring you from competing, from owning all or part of a competing company, etc., and if you violated that order, you would be in contempt of court and could be fined, even possibly imprisoned. And/or they could sue you for monetary compensation ("damages" as the law calls it), such as an amount equivalent to any business they lost due to the compensation.


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