No compete contracts

Does anyone know if a roofing sales, no compete will stand up in court for a 1099 contractor?

Best check with an attorney. Often they don’t hold up if it deprives you of the ability to make a living. Every state reads it differently.

I seriously doubt it. Question is though, why would anyone sign one to start with?

Non-competes have some chance of holding up when there is proprietary information involved or if, for example, you were given a Customer base to call on. I don’t see how any of that even remotely applies to a roofing company. If you were a high level design engineer for Intel working on the next generation microprocessor, it makes sense why that person could be prevented from going to a competitor and taking the intellectual property with them in their head. But a roof sales rep? LOL! Get serious. Particularly a 1099.

I was in the process of typing a reply when I read what A.D said and saw that he has already said it.

Case Law varies by State. In Oklahoma, they are uneforceable for individuals. Corporate law is a little different and they can stick.

I hired a Salesmen once with a NC Clause in his contract. Previous employer sued me for poison fruit concept and him for breach of contract. Case law in Oklahoma was a slam dunk in my favor. Still this company tried to bleed me out. $16,000 later I won the case and fired the employee the next day. I didn’t even like the guy but it was a matter of standing up to the largest privately held waste company in North America(stated in their court briefs.)

Point is they are usually unenforceable but are you willing to spend $16,000 to prove a point? Your attorney costs are usually not recoverable in these types of proceedings.

Big difference between employee and 1099. What the company with the non-compete should be very concerned about is the IRS, not this guy working for another company. Their efforts to control this individual may bleed over to other areas which could arguably have made him an employee in the eyes of the IRS. Taking this to court raises the visibility of this to where the IRS may notice. So the real question is, does this company want to risk the chance the IRS may be knocking on their door by pursuing something they have little chance to win any compensation for? Further, their own attorney who is filing the lawsuit isn’t free. Perhaps they are that stupid, who knows. Once again, I can’t imagine why someone would ever sign a non-compete clause to begin with.

Dad,

Most times these clauses are hidden in the original employment agreement. They are kind of ambiguous and sound like an anti-double dipping or moonlighting clause. Something like: “Employee shall refrain from seeking employment or compensation from our competitors while this contract is in effect or the divulgence of trade secrets to our competitors!” Later on down in the fine print: “Provisions of this contract remain in effect for a period of x years after employment is terminated.”

Employee assumes he agreed not to reveal trade secrets to new employer but actually just agreed to a no compete clause!

You should see all the things I had to sign and agree to in my last assignment in Iraq. I even had to agree to Cremation of my body.

[quote=“famous”]Dad,

Most times these clauses are hidden in the original employment agreement. They are kind of ambiguous and sound like an anti-double dipping or moonlighting clause. Something like: “Employee shall refrain from seeking employment or compensation from our competitors while this contract is in effect or the divulgence of trade secrets to our competitors!” Later on down in the fine print: “Provisions of this contract remain in effect for a period of x years after employment is terminated.”

Employee assumes he agreed not to reveal trade secrets to new employer but actually just agreed to a no compete clause!

You should see all the things I had to sign and agree to in my last assignment in Iraq. I even had to agree to Cremation of my body.[/quote]

I’m not sure why you had to agree to a frontal lobotomy but oh well.

I’ve seen a lot of them as well and the ones I have seen were not buried in the manner you mentioned. If they were, I hardly see how they would ever hold up in court. They are “iffy” at best if clearly spelled out and if hidden in the fine print and ambiguous, no chance.

What trade secrets are going to be divulged in roofing? A customer list isn’t an issue because by the time a repeat sale comes around, the period following termination or resignation has long passed. Any savvy attorney would have any attempt by the former employer squashed in a heartbeat and have valid reason to counter sue for a law suit.

All i have to say is if your double dipping as i have seen you will get caught at one point and like referrals it will ruin your reputation.

Dad,

Customer lists are golden. In OKC last year, houses were reroofed 3 times in a year. I feel bad if your company has no trade secrets. Do you pay the same as everyone else for materials? Do you mind letting the world know your pricing formulas? Your insurance adjuster contacts? Do you publish your square count on every house you bid?

If you are as successful as you claim, I am certain that you have certain secrets that you have learned over the years that give you the competitive edge in your market.

Thanks for all the input, my friend is simply looking to go to work for another roofing company. and worried of the legal outcome if any. i don’t know of any trade secretes in the Roofing bus. and don’t think it would stand up in court.

No trade secrets or valuable information in our company Famous. We work hard at trying to give our stuff away, just like you, my hero.

It isn’t a matter of what I mind dude, it is a matter of common sense and law. I could spend a week explaining to you what we do and exactly how we do i and it wouldn’t matter. You’d still give it away for next to nothing.

Dad,

Sarcasm aside. If you want to disclose any bona fide tricks or secrets then just please privately contact me. No need to disclose such data on an open forum. :smiley:

[quote=“famous”]Dad,

Sarcasm aside. If you want to disclose any bona fide tricks or secrets then just please privately contact me. No need to disclose such data on an open forum. :D[/quote]

If you would listen instead of posting stupid crap all the time, you might just pick up a thing or two. You need to stick to your special areas of expertise … like flashing.