DungeonsNDemos

Rolling 20's all day

Acclaimed Answer

Non-Compete's... How Have You Dealt With Them?

I am in a new situation in my professional life. Would greatly appreciate your advice.

I am an inside sale rep, worked for my current company for 3 years, THEN quit in 2019 as I wanted to try a different type of sales and I thought the grass was greener. Went and did sales elswhere for a year. Due to growth from the pandemic I was offered a spot to come back as I wasn't happy at the other company. Been back just shy of a year.

I have been approached by a company looking to open a division that will sell a product solution (hardgood) similar to my current company's. Different design, just same benefits for the most part. It will be at least "mildly" competing with my current company's product. Both are great products and financially sound companies. Over the long-term I could potentially make good money with my current company but my base is low and it will take maybe another year.

The new opportunity will be acting as a startup, and I would be in at the ground floor with equity offered (don't have that now), benefits, and from what I'm told - at least 30K higher base and still uncapped commission. Fully remote as I am now. Working more collaboratively. Plus opportunity for upward movement (No chance where I am now due to structure of my current org).

I currently am on a small sales team and while our company is doing well, I am not seeing the sales commissions I was looking for when I came back. My direct report runs the company basically, and I've had a good relationship for the most part, but it's lacking any training or mentorship. I don't feel myself growing.

It's been maybe a week since the guy who is putting the team together contacted me (he will be the Division Dir.). No official offer yet as I am still vetting them and will be meeting with their execs.

The only time period listed in the whole noncompete is that I can't solicit any customers or employees away for 6 months. Nothing specific about how long till I can "compete directly or indirectly".

How have you handled yours in the past?

Also, would I be a dick for leaving?

🤘 Personal Growth

🤝 Interviewing/Offer

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11 comments

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Incognito

WR Officer

1

Master of Disaster

I have a lot to say on this but don’t have the time right now. Commenting so I remember to come back to it later

DungeonsNDemos

Big Shot

1

Rolling 20's all day

Thank you, looking forward to it.

DungeonsNDemos

Big Shot

1

Rolling 20's all day

@Incognito bump reminder? lol Happy End of Quarter

Incognito

WR Officer

0

Master of Disaster

To start - https://bravado.co/war-room/posts/non-compete-question

CaneWolf

Politicker

1

Call me what you want, just sign the damn contract

You're not a dick for leaving. Take care of you.

Non-competes for ICs (at least in the US) are largely bullshit. You're fine.

DungeonsNDemos

Big Shot

0

Rolling 20's all day

Just clarifying, IC's? I'm assuming individual contributor

GDO

Politicker

1

BDM

In the EU non-competes are very hard to enforce.

Ryase1113

Opinionated

1

Regional Director

A Non-Compete shouldn't apply unless you're selling the same products into the same customers (and depending on how it's currently structured, possibly territories). They are incredibly difficult to enforce in many states and it costs more than it's worth to most companies to go after a previous employee.

If you can ask your new potential company to assign you to sell into a different region/territory then that should be more than enough to protect you in my experience. (For context, I've been on both sides of this as an IC and as a VP with sales reps who have left my company to work for competitors)

And 100% you should do what's best for you and your career, don't feel bad about leaving (but make sure it's really a better next step for you!).

DungeonsNDemos

Big Shot

0

Rolling 20's all day

Thank you for the advice. I am in a state with historically more restrictive non-compete enforcement, the tough part might be that my sales efforts/markets are very broadly defined: all USA and any company who needs our product.

I think there is a way around it as the opportunity company offers a few products in the general vicinity and my focus could just be one related product with a different deliverable (a service). I know this is a broad explanation but just being careful.

My thoughts are also if I just don't update linkedin, then no one would know or findout...

Incognito

WR Officer

1

Master of Disaster

ok - read your post fully now. So from what I understand, you have a 6 month non-compete for clients and employees. Need a bit more clarification on "nothing specific about how long till I can compete directly or indirectly'". Like were those words "compete directly or indirectly" in your contract? Or were you just saying you didn't see them there?

If you don't want your new firm to be in a lawsuit, you have to abide by the rules of the contract. It's only 6 months. Mine is 2 years for clients and employees, 6 months for prospects.

So the question really becomes, will the clients discontinue using the service they're using now if they buy the service at the new firm?

Is your current firm litigious? How much revenue will they lose immediately if you are in breach of contract vs how much time and money will be spent on taking your new firm to court (yes, your new firm will be liable)? Is the new firm aware of the non-compete in your current contract? I would assume they would want a copy.

My industry can be extremely litigious, and we are all selling the same thing so it is direct competition. Our contracts are iron clad and been through a million lawyers and lawsuits. I even have a 60 day written notice provision for resignation, and I have to abide by that regardless of the fact that I'm an at will employee in an at will state.

I've literally been speaking with lawyers about this for weeks.

Incognito

WR Officer

0

Master of Disaster

@funcoupons - didn't make a whole post about it, as there are others. But this is generally what my lawyer has been telling me. I have a second lawyer I'm going to call later today and I'll respond to this comment if there are any further insights.

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