non-compete agreements

[pilotyip]

An opinion from an atty. in Michigan, generally blue collar types of non-competes can be beat in court. Blue collar jobs do not fit into the frame work of employees generally covered by non-competes, like salesman, marketing people, etc. The trouble is the party holding the contract can keep it in court until it costs the person fighting the non-compete too much money. So most people do not fight the non-complete. However if a group of pilots got a good atty. and banned together to fight one non-compete and won the case, it would set a precedent and all other identical non-competes with that company for pilots would be not be emforeable. Any atty's, law students or paralegals want to comment on the Michigan atty's opinion?

 

[WrightAvia]

Im not an attorney...

But I do have a Police Science Associates Degree and I stayed at a Holiday Inn Express last night...so maybe I can help.

It's BAND together. That's about all I can help you with, please come again.

So most people do not fight the non-complete. However if a group of pilots got a good atty. and banned together to fight one non-compete and....

 

[tarp]

Huh?

What possible special skill does a pilot hold that would be the subject of a non-compete?

If you are in management, then I can see you signing a NC agreement that you will not take proprietary info and then compete against the owner. i.e. making a company that does exactly the same thing to the same customer base. That's a law suit waiting to happen.

If you are just a pilot and you are seeking employment at another business - the non-compete is usually completely overridden by "right to work" rules in most states.

Consultants very often sign non-competes to keep them from creating companies and stealing business from their employers, but a consultant can very easily quit one job and take a job at another "competeing" firm - NBD.

 

[siucavflight]

As a flight instructor i have had a little experience with one. I left an instructing job due to differences with my boss. I got a lawyer who said that the non compete would not stand up in court. But i soon discovered as i went around to other flight schools around the airport that they knew the school i worked for had non competes and they did not want to have to bother with the legalities of hiring me so i was unable to get a job for a while.

 

[midlifeflyer]

The enforceability of non-compete clauses is based on their reasonableness. And what is considered reasonable varies enormously from state to state.

o In some states, they are considered inherently unreasonable.
o In some states, they are considered inherently reasonable.
o Some states tend to be pro-employee.
o Some states tend to be pro-employer.
o In some states, if it contains an unreasonable part, the whole non-compete gets tossed out.
o In some states, if it contains an unreasonable part, the court will "blue pencil" it, just toss out the unreasonable parts and keep the rest.
o In some states, if it contains an unreasonable part, the court will rewrite it so that it's reasonable.
o In some states, courts will imply a certain level of non-compete even without a contract.

Even if a group of pilots from one company banded to gether to fight one and won, that ruling would only set precedent in that one state.

Depending on the state, the costs may no be that high. There's no incentive for the employer to "keep it in court" beyond a preliminary stage. Enforcement of non-competes tends to be by the employer running into court to stop the violation. A hearing is typically held within days. As a practical matter, whoever wins at the preliminary stage wins the case.

 

[corp_da20_guy]

I think that most employers that use such a contract...they are using more of a confidentiality agreement than as a no-compete. I had a similiar contract at a previous employer. It was written as a no-compete in the sense that the new owner didn't want us that were already there to leave and start another company to go head to head with them (charter business). Although the way it was written said we couldn't work for anyone (was a general no-compete not written with aviation in mind). After several people complained and took the contract to attorneys and then refused to sign, a new contract was implemented that was a confidentiality agreement which was what the company's intent was rom the beginning.

Happy flying!

 

[enigma]

An opinion from an atty. in Michigan, generally blue collar types of non-competes can be beat in court. Blue collar jobs do not fit into the frame work of employees generally covered by non-competes, like salesman, marketing people, etc. The trouble is the party holding the contract can keep it in court until it costs the person fighting the non-compete too much money. So most people do not fight the non-complete. However if a group of pilots got a good atty. and banned together to fight one non-compete and won the case, it would set a precedent and all other identical non-competes with that company for pilots would be not be emforeable. Any atty's, law students or paralegals want to comment on the Michigan atty's opinion?

Are you looking to get into the freight business?

enigma

 

[JimNtexas]

I looked into competing in the software business with a company that laid me off.

My attorney told me that in Texas non-competes are viewed very narrowly by courts and are always difficult to enforce. In my case, he felt that if I did not sell my software in my home county or any of the adjacent counties for a year or two I would be fine.

That said, I would of course risk the cost of legal proceedings if the old employer chose to hire a lawyer and harress me about it.

 

[bobbysamd]

Non-compete

An opinion from an atty. in Michigan, generally blue collar types of non-competes can be beat in court. Blue collar jobs do not fit into the frame work of employees generally covered by non-competes, like salesman, marketing people, etc. The trouble is the party holding the contract can keep it in court until it costs the person fighting the non-compete too much money. So most people do not fight the non-complete.

Which might be a mistake, depending, as Midlife noted, where you live. In some states, covenants not to compete are not enforceable, or may be legal but the provisions in them are not enforceable. It might be worth it for the "fighting" party to fight it.

It might also depend on the business and commonly-accepted business practices. I recall that several years ago a radio personality in Denver had a non-compete clause in her contract. She left the station and got the court to strike the non-compete. But, as Midlife also noted, if there is a severability clause in the contract, other provisions of it may be enforceable. There may be provisions in the contract that could have the same effect as a non-compete.

However if a group of pilots got a good atty. and banned together to fight one non-compete and won the case, it would set a precedent and all other identical non-competes with that company for pilots would be not be emforeable.

But what about for pilots who work for that company in other states? You have to look at the contract. A well-drafted contract or agreement of any kind will have a clause stating the particular state's law by which the contract will be construed.

Finally, a lot will depend on the reasonability of the clause, according to this article on non-competes, and must include other provisions, according to this article. To be enforceable, the non-compete must also protect the employer's legitimate business interest. Reasonableness is measured by the non-compete's scope, time period, and geographical area. Lewin G. Joel III, Every Employee's Guide to the Law (1996), at p. 62.

Hope that helps a little. Sorry to get carried away on the research, but, interesting topic.