Q: Non-Compete contract says I cant work for a competitor for 2 years? What happens to me if I do it anyway?
I own a LLC called "Just4u Services". "Just4u Services" has been hired as a subcontractor to do work for a company called "Campaign me quickly". Just4u Services has been subcontracting for them for 3 years now. Today I received a No Compete contract stating "Employee will not work with, for, or have any interest in, any organization that competes with the Company for 2 years after employment within the United States." If I sign this, Does this mean that the LLC can not compete or does that mean that I (Lisa) can not compete. Also, If I did compete can anything happen to me personally? Could I create another LLC if need be? I live in Florida and the LLC was created in Florida by the way and the company is out of California. I don't intend on losing this account but I would like to know the legalities before I sign. Thanks
A: Non-compete clauses are very, very restricted under California law. From your question, it appears the prohibition applies to your company, which is likely the "employee" under the contract. You really should have a lawyer examine the agreement to determine its scope and validity before you sign.
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