Non-Solicitation Clause

[seldomseen]

Are there any business lawyers here that can offer some advice?

Long story short you are offered a retention bonus that has non-solicitation clause for 24 months. What are the ramifications of breaking the agreement?

 

[Greenbacks]

http://www.eremedia.com/ere/whats-wrong-with-retention-bonuses-pretty-much-everything/

 

[DNoonan]

depends on what the language in the agreement says but usually forfeiting the retention bonus

are you planning on leaving and taking customers or employees with you (or trying to)? if so, just make sure doing so is worth more than the retention bonus and current deal!

 

[seldomseen]

Wouldn't be taking customers or anything. It would be to prevent you from leaving your current position to work for a current client. Which in the next 24 months is my goal. If it were to happen the current would without question know.

 

[DNoonan]

Sounds like they would be soliciting you in that case...do you mean non compete?

but anyway how can you be any worse off by getting the bonus

1 = retention bonus and stay
2 = better deal comes along, take it and lose retention bonus

 

[seldomseen]

I don't know much about legal jargon. Can the terms be disclosed to a direct business partner? Does solicitation imply employment?

to paraphrase........

Non-soliciation
You may not solicit at any time during the 24 month period with whom you have had material contact, for the purpose of offering any product or services that competes with the products or services offered by the company at the time of your termination.

 

[DNoonan]

If you want to pm me I'll send you my email address and can take a look if you send me the agreement. You can redact anything personal if you want to.

 

[Buster]

In my advertising endeavors over the many years,I have known many people that thought they were bound by non-compete clauses and never once has the threats been pursued...It all depends (I think) and am pretty sure on whether your state is a "right to work state"...

 

[MattyMatt]

I did it. They knew it would cost them the same amount they would get from me to get it, so they didn't even bother. Let DNoonan take a look...

 

[KingEleven]

non compete is VERY DIFFICULT to enforce...VERY!

 

[MattyMatt]

non compete is VERY DIFFICULT to enforce...VERY!

Agree. Couple it with the hire and fire at will here, and I've never heard it enforced...

 

[KennyB]

The biggest factor is how deep are the pockets of the person trying to enforce the agreement.