[CLUE-Talk] Big Cajones

Jed S. Baer thag at frii.com
Fri Jun 15 17:28:21 MDT 2001


grant wrote:
> 
> Well, I did it.  I quit my job in this nasty job market because of the
> fact that they are a MS partner.  Now, I am not stupid, I had another job
> lined up, but, still, wish me luck.  My non-compete states that I may not
> work for another consulting or contracting company at a client site
> within one year after leaving them, but I am going as a perm to a place
> where I was back in October.

Here's where things can get ugly. (IANAL, but a friend of mine went
through this, and I have a lawyer who advises me on these things from
time to time.)

Is your former employer incorporated in Colorado? (Or do they have a
permanent presence in Colorado, which usually amounts to "doing business
as a Colorado company"?)

Look for a "rule of law" clause in your contract. This is the clause
which states which state law the contract shall be interpreted under. If
there is one, and it isn't Colorado (Delaware would be bad), then you
should realize that they can seek an injunction in the state they're
incorporated, IIRC, and that can get very messy. If there is no such
clause, then the default would be the state in which they're
incorporated, or Colorado, if they have offices here, and you work "out
of" that office. Again, potentially messy.

The big problem is that they can send you a cease-and-desist order. You
then have to spend your time and money responding to that, because at
that point you will want a lawyer. The risk to you, even if you prevail
in the end, is whether you can counter-sue and recover you lawyer's fees
and lost wages. Also, it can take, potentially, quite a while to
resolve, and in the mean time, worst case is that your income is at
risk, via injunction. Yes, you could go get another job at that point.

Remember, I'm talking worst case scenario, here. Typically, in Colorado
anyway, the situation you're describing is handled between the employer
and the contract company, by way of the employer owing the contract
company a "finder's fee" if you go to work for them either perm, or
through another contract company, within a period of time.

Best of luck to you in the new job. (I wish I had one. ;-)

jed



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