Telling Your New Employer About Your Existing Non-Compete
Yes, but you should be informed when you do. This is important because you want to make sure you alert your new employer to any issues it may face as a result of your current non-compete since those obligations follow you after you leave your current employer. For example, depending on the terms of your non-compete, it may claim to limit the type of work you perform in your next job and/or the clients you may bring with you to a new employer. If these or other items are truly going to be issues for your new employer, you want to be proactive in pointing out the possibility to your new employer. Clearly, you do not want the first time your new employer learns about your non-compete to be upon receipt of a cease and desist letter from your current employer. In addition to being a headache for your new employer, it may reflect poorly on you and—in a worst case scenario—cause you to lose your new job if the new employer deems it easier to cut you loose.
What If My Non-Compete Suggests Limitations Preventing Me From Accepting a New Job?
All non-competes are going to seek to place limitations on you in your subsequent position. If you give your new employer the opportunity to evaluate the non-compete in advance, your new employer can make its own assessment of whether it perceives any potential risks and whether those risks are worth taking. Depending on the value you may bring to the new employer, it may be willing to negotiate with your current employer to work out any issues in advance. Alternatively (and as mentioned in our blog piece from last week), if you work in the financial industry, the Protocol for Broker Recruiting (the “Protocol”) [1] may apply which can smooth your transition from one job to the next and immediately define the steps you can take and the tasks in which you can engage with your new employer.
I Don’t Want to Alarm My New Employer Unnecessarily, So How Should I Broach the Issue?
One way to address the issue is from an informed perspective. In most circumstances, we can review your relevant documents and assess your situation for a flat fee to let you know where you stand and help you to strategize about the best way to present the non-compete issues to your new employer. If you would like to discuss your situation with us, please feel free to call or e-mail us at any time. You will be on the phone with an attorney within 24 hours.
REFERENCES
[1] https://www.investmentnews.com/step-one-withdraw-from-the-broker-protocol-76905