If I was transferred to an affiliated company, does my non-compete still hold?

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If I was transferred to an affiliated company, does my non-compete still hold?

I worked for a MD, then 7 months a new company was formed during an expansion some of the employees were including myself were transfered to the new company, no choice. I had signed a non-compete with the original company that is still in existence, but was not asked to sign a new non-compete. Will the original hold if I go to work for a competitor?

Asked on July 27, 2011 Pennsylvania

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The question that you are asking here is is you non-compete agreement transferable.   The answer to this question is yes, they can indeed be transferable. The first step is to look at the contract. If the contract is explicit about whether it can be assigned then it is transferable. If it's not explicit, you may want to look at the documents surrounding the new business formation to see if those agreements transferred the non-competes to the new company.  If they were not transferred, the new company can not enforce it. Now there is always the issue of how long can a non-compete can last.  The general rule there is a reasonable amount of time.  Courts will tend to not enforce them if they are overly burdensome or too broad.  Seek help and bring the agreements.  Good luck.


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