Non Compete Order

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Non Compete Order

Can an employer change the company name on a contractor agreement/non compete or
does he have to make a separate contract? A non compete was signed with his 1st
business, he then opened a 2nd business. Both company’s are active. It was not a
name change of the company the contract was made for.

Asked on August 23, 2016 under Employment Labor Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Generally, a non-competition agreement is only with the company with which it was signed: i.e. only that company can enforce it. There are exceptions, however: for example (main exception), if business 1 was an LLC or corporation and business 2 is an LLC or corporation owned by business 1, then if 2 is a similar or same line of work, the non-compete may (depending on its specific terms; e.g. does it say it applies to subidiaries, affiliates, etc.?) apply to it, too. You need to look at the terms of the contract and the precise facts to definitely answer this question.


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