Who's been through Non-Compete litigation/arbitration? 3

[jsteph]

Hi all,
I have a situation, which is all too common I'm sure, and would like some opinion on this. I want to do a fairly standard 'leave the consulting firm and work for the client' move.

I do have a non-compete contract, and the client has a 'non-pilfer' contract. This is in the state of Illinois. Has anyone been through this, and is there a 'typical' way that these things work out, or are the outcomes all over the map based on each circumstance?

I've heard some say that since Illinois is a 'right to work' state, and that since an employer has the right to fire/lay off someone without any reason whatsoever, that the courts generally feel it's unfair to give the employers the 'best of both worlds': the ability to fire-at-will and also retain the non-compete protection.

People have said these agreements aren't worth the paper they're written on, but I'm not so sure. I haven't been fired or laid off, and am not in any current danger of either. But the client is looking for a rate cut that my employer is unwilling to give--at least not without cutting my salary. I view cutting my salary as a breach of my employment contract, and would then feel I'm not bound by the noncompete. If we lose this client, then I may well be in danger of being laid off, but the client is more than willing to take me on as an independent, of course at a rate lower than my current firm charges but above what my current salary, taxes, insurance, etc. is. Any opinions, ideas? Thanks,
--jsteph

 

[CajunCenturion]

Consult and Attorney.

Good Luck
--------------
As a circle of light increases so does the circumference of darkness around it. - Albert Einstein

 

[jrbarnett]

Jsteph,

If you get asked about salary cuts, remember that the IT industry at the moment is not particularly buoyant, so you have to consider that if you don't take it, you may lose your job if your employer can't afford to pay your full salary. Just remember that there are plenty of other IT professionals out of work ready to take your place for less money.

I speak as someone who endured a 20% salary cut for 6 months, then was made redundant.

John

 

[chiph]

I've heard some say that since Illinois is a 'right to work' state, and that since an employer has the right to fire/lay off someone without any reason whatsoever, that the courts generally feel it's unfair to give the employers the 'best of both worlds': the ability to fire-at-will and also retain the non-compete protection.

This is true. However, should your current employer decide to make an issue of it, and take you to court -- can you afford an attorney to defend yourself? And what if your new employer were to be named in the suit?

My first guess would be that the new employer would fire you, and have a letter sent to the previous employer: "We just fired him, so he's no longer a problem. Please cancel your suit".

Chip H.


If you want to get the best response to a question, please check out FAQ222-2244 first

 

[sleipnir214]

CajunCenturion:
"Consult and attorney"?

Define the verb "to attorney", please.

Want the best answers? Ask the best questions:

http://www.catb.org/~esr/faqs/smart-questions.html

TANSTAAFL!!

 

[jsteph]

Thanks all,
I spoke with the client further today. They've been through this before, and are willing to negotiate a buyout with my current employer. But that would require me to be officially employed by this client--not subcontracting, which is what I really want. I don't like being 'owned', and 2 years ago when the bust was really at it's depth, I would have taken it. Luckily and ironically, this client was having a banner year then and didn't mind the rate my employer was charging for me. They are hitting the skids now, but I think it will be a short downswing for them, they're a very strong and cash-rich company.

I did speak with an attorney, and basically got info that I already knew--like that what I was doing was in direct violation of my contract. I think I'll try to negotiate a compromise where the client will allow me to subcontract but with some protection from the current employer--such as testimony that I did not hurt my current employers business because this client was going to drop our firm anyway--which they were without the rate cut. So I can't steal business that wasn't possible for my employer to get anyway. It's a bit of a stretch, but it's worth a try.
Thanks for the insight,
--jsteph

 

[lionelhill]

Cajun, sleipnir. Look on the bright side, he's in the USA where an attorney presumably attornies. Here we have solicitors who solicit?? (barring being a barrister, who either bahs or bares. And I'm not sure which is worse).

 

[sleipnir214]

I figure that "Consult and attorney" is probably very closely related to the old English highwayman's demand of "Stand and deliver".

Want the best answers? Ask the best questions:

http://www.catb.org/~esr/faqs/smart-questions.html

TANSTAAFL!!

 

[CajunCenturion]

To Attorney: vt To Gouge, To Harass, To Perform tasks that no self-respecting human would do, To be a real pain ...
and of course To Crawfish

Good Luck
--------------
As a circle of light increases so does the circumference of darkness around it. - Albert Einstein

 

[MasterRacker]

So that means that at some point an attorney should attone


Jeff
If your mind is too open your brains will fall out...

 

[jsteph]

Hey, some of my best fiends are attorneys...
-jsteph
(typo intentional...in case you're wondering)

 

[bi]

it's funny how everyone hates attorneys until they need one.

 

[CajunCenturion]

Just because you need one doesn't mean that your feeling about them changes. Life is full of necessary evils that you just deal with when you have to.

Good Luck
--------------
As a circle of light increases so does the circumference of darkness around it. - Albert Einstein

 

[chiph]

Sort of like dentists.

Even though mine is a very attractive petite blonde -- visiting her is not something I look forward to.

Chip H.


If you want to get the best response to a question, please check out FAQ222-2244 first

 

[CajunCenturion]

Let's be honest with ourselves. There are many in business who consider IT to be a necessary evil as well.

Good Luck
--------------
As a circle of light increases so does the circumference of darkness around it. - Albert Einstein

 

[jsteph]

<<...who consider IT to be a necessary evil >>
That's of course because except in a consulting firm, we're not profit centers--at least not in a direct sense.

As far as attorneys, a saying applies that is similar to one used for politicians. In the Chicago area, we had a notoriously crooked congressman--one who was considered the most powerful in Washington. Blatantly crooked, but he kept getting re-elected by vast majority (except when he was in jail). The consensus was:

&quot;He may be a crook, but he's our crook.&quot;
--jsteph

 

[skiflyer]

Being in IL, I'll just echo and extend chiph's earlier comments from the story of a friend.

Firm had a non-compete, he wanted to leave and go work for a client, unrelated to his current work. Firm didn't want him to go... so it was the simple threat of &quot;if you hire him, we'll enforce the non-compete&quot;... no one really expected the non-compete to hold up, but the benefit to the client was worth the potential legal fight. Friend stuck at a firm in a weird limbo state where everyone knew he had tried to leave, client wasn't hiring anymore because of possible court battles. Everyone loses.

So, two pieces of advice... keep the issues between yourself and management at your current employment. Be very certain the client is going to back you up on this.

Best of luck, non-competes suck.

-Rob