In this case, a cpA employed by the seller had signed agreements imposing post-employment restrictions on competition and the use of confidential and protected information. With the sale of the business, the seller and his sponsors agreed not to compete with the buyer in the metropolitan area where the seller was located. An agreement should contain a provision authorizing a court to amend it to support its application. Companies should review their existing staff agreements and competition bans to determine whether they have properly protected themselves from the fact that employees are not taking customers to leave. How does a company work when a former employee violates a non-compete agreement? It is not uncommon for a client to notify a CPA company when a former employee asks for his or her activity. In this case, the company must decide whether to call the client to testify on behalf of the company. If he or she does not testify against the former employee in court, the company is in a difficult situation. It may compel the client to do so (and probably coerce him) or may allow the client not to testify and may not be able to provide legitimate evidence of an offence. On the advice of their lawyers, some companies find it easier to resolve their dispute or try to resolve it outside the courts. That`s right? The Court`s decisions on competition prohibitions have given rise to time guidelines. The scope of the agreement. (The courts have held that the scope of a competition agreement should not be too broad to be enforceable.
In the case of a CPA business, the volume is normally indicated with respect to the list of customers of the company or all customers with whom an employee has been in contact for a specified period of time.) If the agreement is part of the recruitment process, the contract itself is the consideration. All state courts that accept non-competitive contracts agree that the performance of a contract when the employee begins is a sufficient consideration, as well as a major change in the work, such as the promise of an increase or promotion. If the company introduces the agreement after hiring (because its policy or employee responsibilities change), an increase or promotion is likely to be qualified as sufficient consideration.