KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** More comment on Non-compete ban not dead issue yet / ISC private meeting-schedule now October 1, 2024 ************************* More comment on Non-compete ban not dead issue yet from article on September 16, 2024 ************************* Ken In our and many industries a non-compete is highly necessary. There are countless accounts of sales reps working for a company retaining customer lists and later going to resell them for a competing brand. We had that happen to as well as another issue. Over many years we invested heavily in sponsoring partners only to have the person we paid decide that "they" would open their own shop taking all the partners with. Net loss to the business $500K and counting. The clear and unfair advantage was we incurred the cost to promote and build our reputation and brand for years and now we suffer the loss of those costs as well as the proven lost revenue each and every day from relationships that were producing sales. After the mess was made the individual did not even have a license. The bleeding heart judge found the non-compete too restrictive and even though he had the legal authority to Blue Pencil, he simply stated that he did not want to deal with it. What a judicial joke however it was also on us for not having the most up to date language. Yes people have a right to work but not a right to rip others off and if one want's to open their own competing business that is fine, but they need to pay the price not rip off the hands that feed them to do it. While the FTC thinks that non-competes suppress wages and inflates heath care what about the business that fold when this happens to the point they can no longer succeed and many loose stable jobs as a result and in our own case to those that are not qualified to create jobs. They all think it’s easy and they can do it but many are clueless as to what it really takes. Anonymous (due to on-going litigation) *************************** Response *************************** Interesting perspective from the “client” side [not my client BTW] who perceives itself losing, fighting an uphill battle or lost the case. There are questions, such as the state and the written Employment Agreement [because I have to assume it was not a K&K Employment Agreement]. If the agreement was drafted by an attorney and represented to be enforceable [yes sometimes clients do want contracts that they know won’t be enforced] then it sounds like a pretty good legal malpractice claim. In most states some form of restrictive covenant against competition is enforceable. The FTC ruling is stayed. If Trump wins it’s likely to become a dead issue. It looks like it will work its way up to the Supreme Court who, not doubt, will acknowledge the US Constitution ban on Congress impinging on contract rights and its recent ruling that essentially held that administrative agencies are supposed to enforce, not make, laws. Non-compete covenants are only one piece of the package you need. Confidentiality and proprietary property need to be protected, and that is easier to enforce. Interestingly enough not all “blue states” are as restrictive as California. New York will enforce the restrictive covenant as long as it’s reasonable. Your lawyer needs to know that reasonable is and more importantly know how to recognize when it’s not. In this industry seeking restriction beyond a radius of your office is probably enough. Your tech or salesman in San Diego shouldn’t be restricted from working further north in California. Some workers may have much broader reach, perhaps nationwide, and they need some restrictions that may be for short duration to make them reasonable and enforceable. But it does depend on your state. When you get the K&K Employment Agreement we do research your state so that we provide you with a contract we think will be enforceable. If you draft your own agreements or steal it from someone else good luck. Investing in the K&K Employment Agreement for $995 may turn out to save you half million or more. *********************** Help this forum grow - and thanks to those who have already responded ******************** If you are on The Alarm Exchange you should welcome exposure on this forum provides. Send in your email lists. Thanks ***************************** K&K Holiday Party - Save the date: December 12, 2024 ******************** STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
