Has anyone started their own business after working for another company? I was selling around $50,000 to $70,000 a month on exclusion alone. I only made $12.00 an hour and 4% of anything after the first $10,000 sold....exclusion only. I asked for a small raise and the owner refused. After I resigned he sent me a letter saying he would aggressively pursue me through litigation if I worked for another company or started my own. I know he is serious. Should I hire a lawyer before I do anything? Thanks for any advice. I'm new to the forum...

Did you sign a non compete? If so fine tooth the language and compare it to your states contract law and case histories.

Mine was worded in such a way that any competent court would have tossed it on first reading.

Non competes are often used as a bludgeon to bully former employees into compliance when they should be finely tuned instruments.

Basically a non compete is a contract the in consideration of reward, employment/training, the employee agrees to very specific restrictions on future employment after termination to certain times and places. All this must be spelled out and cannot prohibit a person from earning a living.

Here in Georgia contract law is clear in one regard. A contract must be correct in all parts or the whole is null. Severance clauses do not apply, though I signed one of those as well. Where mine fell apart is I was barred from operating in four different states, the entire state. Under georgia law you can only bar an employee from those areas where the employer has active operations AND the employee actually worked in. In my case I had not worked in two of those states nor did the employer have active operations in all areas of those states. The short of it since it was overly broad and incorrect in those sections the whole of it was void and unenforceable.

But this only applied in Georgia as the employer successfully won in another state on the exact same contract with another former employee. The employee erred by choosing to fight it in his home state instead of fighting it here in Georgia where the corporate office and articles of incorporation are.

Do your homework and you might find your way out from under.

Did you every sign a non compete form? I would talk to a lawyer just to be on the safe side.

I did sign a non compete. I wish I did not. It says the entire state of TN but he only works one county. Thanks Warrior and Opie. I'm going to have a business lawyer review it and see if I have a chance. I was just feeling like I was being used and not compensated for my efforts. Thanks guys!

I don't think you have to worry about the non-compete agreement as very few can be enforced. However, if you signed a "non-solicitation agreement" be very careful. This generally refers to past and current clients/customers as well as trying to get other employees to join you in leaving or trying to recruit them to your new employer or business. Perhaps the following link will help >

http://www.lexology.com/library/detail.aspx?g=785ea69c-1ead-4a81-ba2c-eb8e21793e6a

Working for someone else and having your own business is a big step. I wish you well! Glad to see more small business get going.

Sadly though what you do have worry about whether it is enforceable or not is the costs of being drug to court even if you win.

That guy sounds like a real tool to work for. If you were hustling and selling that much work for him a month, congratulations on your work ethic and determination. I don't know what his margin was on that work you were selling, but in my opinion he was a fool for losing you. For the 600,000 to 850,000 a year you were selling, I would have bought you a house, and let you marry my only daughter to keep you in the family....When you get the legalities of this figured out you will do fine on your own.

Thanks Albert.... That made me laugh!! Lord knows I needed one! I was in shock when he refused the raise...very bad business choice. Thanks for your encouragement! Warrior...I am hoping my lawyer can give me some idea of what the cost will be before I start down this long road. Thank you again sir! Thank you Evert! If anyone has any more advice I am all ears. Thanks Guys!
PS I learned everything I know from this site, Robb Russell pod cast and my Dad! I miss Robb and my dad...RIP

I really wouldn't worry to much on the legal costs until I had done some homework. If you know how to search there is some good info on the net, alot that isn't so be careful, then if you know a shyster that does contract law or even if you have to buy an hour of his time to look at it. Be sure though to do your homework first because all shyster are paid to lie.
Then if your sure of you're on solid ground let the ahole know it without making him even madder. If he's got any sense he won't waste his time and money.

Thanks Warrior. I have been using my google fu for the last three days. I have found a lot of information. I have a appointment set up to meet with a business lawyer next week to review the non compete. Fingers crossed! I received another letter from my former boss today bragging about how he caused another former employee to go bankrupt for trying to start his own business. Reminding me yet again of the outcome I would face. I am not even going to touch a trap until I know I am free and clear!

Sounds like he's pushing the limit on harassment as well. Give him just a little more rope to hang himself.

How about your wife starting and owning the business and you are her employee. Your former boss is just blowing smoke IMO. In some area's there are groups of business people that will help you set up a business. Free advice. They will help you with a business plan etc. Tap every resource that is out there. Good luck, keep at it!

Thanks Warrior and Everet! I will post and keep this thread going with how it all plays out.

Since you've already got an appointment with a legal counsel, I'd say wait until you speak with them. This is something we're dealing with ourselves right now and there are a lot of ins and outs with it.

Generally speaking, the first item to find out when looking at non-competes is if your state recognizes them. Some states recognize them in great detail, some states recognize them but require more of an open interpretation, while other states won't even acknowledge them.

Second, the non-compete must be realistic with it's restrictions. Trying to claim an entire state as an exempt area is generally not realistic unless the company is the only one in existence and/or offering services that duplicating would be considered as a theft of intellectual property or something along these lines.

Third, make sure the non-compete you have is signed and dated by both parties. A contract requires two signatures so if only one is present, it is much harder to defend in a legal battle and may not be valid. Additionally, you want to keep records of anything you were promised that did not happen such as benefits, raises, time-off, etc.

Fourth, if you decide to do something, do it above board so that their can be no hint of you're trying to pull one over on them. Having a friend or family member create a company then hire you makes it look like you're trying to skirt the agreement, don't do it. Instead, look at creating a company that focuses on a specific service the other company doesn't offer or does very limited work in.

In most cases, in states that recognize non-competes it would be acceptable that the ex employee not open their own business or work for another business within a reasonable distance of the employer's business (generally 1 - 2 hours), take the employer's client list, contact or market services to the employer's clients, or work for an individual or business performing like services that is a client of the employer, or use equipment or skills that can be considered proprietary or intellectual property of the employer's business. Additionally, there is a "realistic" time frame involved that can range from 6 months to 5 years (with 2 years being the average) that once met ends the non-compete agreement.

Thanks Eric! There was a lot of great information in your post. Thank you for your time kind sir! From my research, TN is a blue pencil state. Which means they do not really favor non-compete agreements but they may change the times frames to something more reasonable like 6 months. But if the employer comes to court with unclean hands it is null and void. I have some questions about some ethics of my former boss about rules and laws he broke. (Which was the other reason I left) I am having a hard time finding what I am looking for on the TWRA website. If anyone wants to PM me please feel free. I am a respectful man and do not want to post his dirty laundry on a public forum. Thanks again to everyone! Happy New Year....And may this be your best year yet!

If I make it through the legal battle.... What do you guys think of this business logo?

Sorry it did not work.

Not sure the question you ask has anything to do with Wildlife. More into contract law in general.

Patriot, you can't use the business logo "Sorry It Did Not Work." Our employees already use that slogan regularly.