Non competition covenants

[NewJeffCT]

My wife just accepted a new job at a company a little closer to home. In the forms she has to fill out for the job, it has a non competition covenant that lists out maybe 40 companies that it says she cannot work for for 2 years if she leaves or is fired. The exact language is as follows: "I will not directly nor indirectly be associated with the following listed competitive companies nor other direct competitors not listed that may exist upon my termination." What worries me is the part about other direct competitors not listed, which seems like they can include just about anybody they want...

is this beyond the normal non competition covenant?

[NewJeffCT]

1. kick

just hoping for an answer.

[wyldwolf]

2. non-compete contracts are legal

I had to sign them several times when I did radio. But I always "got out of them." :evilgrin:

However, a just-cause "termination" usually nullified them. I'd check on the legality of your wife being hindered from working if she is fired.

[tjwmason]

3. I signed one of those when I worked at an opticians

My understanding was that the non-specified ones was to take account of changing markets where new competitors could enter.

The line "direct competitors" sounds reasonably tight to me.

[jmowreader]

4. They suck, but they're legal

When I worked for Glamour Shots, part of the noncompetition covenant they had stated that not only couldn't you work for any competitor to them for two years after leaving, you could not open your own competing glamour studio.

I did ask if that applied even if the store went under--GS is strictly a mall-based business, and mall stores go under with appalling regularity--and was informed that it did. Which is whacked if you ask me.

[Sanity Claws]

5. They're legal and enforceable

I believe California prohibits non-competes agreements. If you are living there, you might want to check that out. Otherwise, they are enforceable.

[NewJeffCT]

7. no, the CT in my name is Connecticut

my big concern was that the company my wife just left is sort of an indirect competitor / supplier to this new company. They supply some raw material to my wife's new company. Her old company is going through a lot of changes, but it may happen that in 6 months to a year when things shake out, they give her an offer for a job again at her old company... if my wife comes from this old company, will it now suddenly be a direct competitor (it's not on the list now)

[undeterred]

6. They're hardly ever enforced though

The standard is one year not two.

But I've also been told it is illegal for them to interfere with one's right to work unless they are going to pay you not to work.