Thread: Non-Compete Agreements

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You may need to talk to a lawyer yourself. It will depend on how the non-compete clause in the contract is written to determine whether it will apply to your new location and its overall legality. Good luck with it! I hope it works out.

Also double check that non-competes are legal in your state. In many they are not unless there is compensation.

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I agree it may be worth checking with your own lawyer. I got sucked into this a young electrical engineer - as a result I retrained as a teacher when I left my first real job as I did not want to leave Christchurch where I was not allowed to engage in "related activity" (ie anything in the electronics industry) for several years. Total Bull. It was unenforceable because it was so wide.

Originally Posted by tahiradancer

Also double check that non-competes are legal in your state. In many they are not unless there is compensation.

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Yes, I second this. Additionally, in some contract litigation, the contract will be thrown out completely for being excessively one-sided. I wouldn't rely on it (I had a landlord dispute that could have been thrown out based on decisions in similar cases, but the area and its judges and laws are very much in favor of landlords, rather than tenants), but it's definitely something you need to look into because if the contract is extremely unfair, that provides an excellent base for a defense/counter-claim.

Non-competes suck moose balls. Royally.

Lawyers tend to be expensive, though. Check around to see if you've got any lower-cost legal aid type services in your area, and if you can, have them look over the contract, and by all means let the other party know that's what you're doing. Chances are they'll back off.

I really would check into that. Typically non-competes are for high power executives, or business owners when they sell a business. And usually, the non-compete is a trade off for some other compensation. What did you get in return for signing this?

Also, if the law does support non-compete agreements, double check the length. IIRC, most are 2 years. 3 may be excessive. But you won't know until you ask.

{{{HUGS}}}

I would do some googling on the legality of non-compete agreements in your state. Around here, you have to be offered some compensation (above and beyond getting paid to do your job) in exchange for what you're giving up (the right to do business in the future) or it's not legal.

If I were you, I don't think I'd spend for an attorney yet, but I'd read a lot and probably call their bluff.

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You said your agreement restricted you from teaching within x range of "a specific studio"(my bolding). If that's what the agreement says, then that means the studio specified in the agreement, i.e. the studio that existed at the date of the agreement, and is specified in it. It doesn't apply to potential studios that the studio owner may, at an unspecified location, at an unspecified time after the date of the agreement, potentially open. If she's managed to draft a contract whereby it did, then it would prevent you working anywhere, ever, which is almost certainly unfair restriction of trade and unenforceable.

Originally Posted by MaeLa

The studio is known for taking prior teachers to court for just this reason....This lady is someone that is sue happy and quickly puts you on her **** list as soon as you leave her school.

Has she actually gone to court and won, or does she just keep threatening to go to court and sending jargon-filled, official-sounding letters until the prior teachers backed down? Who's writing these contracts for her that they can have "some flaws" in them and still stand up to repeated legal challenges? Satan? I don't understand how you could have a defective agreement that interferes with free enterprise like this and the court would be okay with that multiple times.

I also don't understand the time frame. There's a two-year student non-compete contract (post #10), and a three-year teaching non-compete contract (post #1), but you're still bound to a contract you ended two years ago (post #1)? Or did you mean that you left the studio two years ago, are out of your student contract, and still have a year remaining on the teacher one?

Are you sure there isn't a legal aid society or free advice group affiliated with a local law school who could help you? BTW, do you know if she's reading this thread?

Originally Posted by beafarhana

You said your agreement restricted you from teaching within x range of "a specific studio"(my bolding). If that's what the agreement says, then that means the studio specified in the agreement, i.e. the studio that existed at the date of the agreement, and is specified in it. It doesn't apply to potential studios that the studio owner may, at an unspecified location, at an unspecified time after the date of the agreement, potentially open. If she's managed to draft a contract whereby it did, then it would prevent you working anywhere, ever, which is almost certainly unfair restriction of trade and unenforceable.

i agree with this. just because they have a teacher in that area (supposidly...i would want to see the documented legal proof of this) doesnt mean that u cant be there. it sounds like 25 miles of their studio location not 25 miles of whereever one of their teachers happens to be teaching

If there is a law school in your area maybe a student would be willing to read your documents and hear your stats. Their research and end-result could be part of their study program. I have heard they can earn extra credit for such projects. Or you could present your case to an instructor, they might utilize your case for a class-room project. Or contact an attorney through the yellow pages or a personal referral that will dedicate an hour or two to your appointment and researching your data - usually for a few hundred dollars. Wise investment, IMO. If you actually open a studio you might want to consider having an attorney on retainer - you pay a flat fee whether you utilize their service or not. I recall years ago a studio owner that paid $50-55 per month as a retainer. She would call with some type question about once every month or so. But she did have 3 situations that more than offset the total fees she paid. One time a student threatened to sue and actually pushed the instructor several times during class. She also vandalized the studio and the instructor's vehicle. Security camera in the parking lot captured the car being vandalized and also the student visiting the studio in the wee hours of the morning. The lawyer handled the entire situation once the studio owner advised him of the situation. The case was settled out of court. The owner actually ended-up with restitution for the broken car window, slashed interior and the damage to the studio windows and door. Their was also some type offset for other factors. I cannot recall everything (happened years ago), but it might have been defamation of character or something similar.

If the studio owner with the non-compete contract is known to file frequent lawsuits that could be to her detriment. This might sound strange but I might consider proposing we have a Court TV program handle everything. That might call her bluff. I doubt she would want everyone knowing how frequently she files lawsuits. Might be a deal-breaker.

I live in Indiana, whose courts are extremely hostile towards non-compete agreements. The ballet company where I used to teach had one with the former AD. He quit and started teaching at a studio just up the road. Ballet company board sued him (MAJOR embarrassment for them) and lost. They had to pay all the legal fees, and actually went under shortly after that.

Threatening to sue isn't actually suing. It costs me $75 to have my attorney send a threatening letter to someone, but close to $1000 to actually file a lawsuit. I'd tell the studio you've already talked to a lawyer and are prepared to fight them in court. Chances are they'll back down.

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I've heard of people being sued.

That said I agree with the moose balls comment above.

You know, America is the strangest place. We're all about Free Enterprise, supposedly, yet when somebody tries it they get sued, threatened, accused of undercutting, this, that, the other thing.

We're all weepy about workers in China (see cheap costume thread) but attack unions in America and are completely tone-deaf to poor people here, who might need a break on lesson fees and/or a cheap costume.

Excuse bad attitude, but this stuff gives me a non-stop migraine and I am turning into Grumpy Old Lady fast.

Meanwhile, I think I'd just go ahead and do my thing. Let her sue. Chances are she'd get stuck with court costs. Also, you could easily claim that AS AN ARTIST you are not doing *her thing* ergo, not competing; we are not assembly line products after all, we are all unique and each of us has something to contribute.

PS isn't competition part of The Great American Capitalist System?

Rolls eyes.

Wait, she didn't pay you to teach AND she made you sign a non-compete clause? Sounds like an invalid contract to me. Where's the benefit to you? There isn't any. There has to be some consideration for both sides in a contract for it to be binding.

She makes her teachers AND her students sign non-compete contracts....sounds like a real winner

I think your best argument was that it the noncompete doesn't further a legitimate interest of the employer such as 1. Trade Secret, Specialized training, confidential information. Your services as a teacher were probably not unique to her business unless she gave you specialized training and had you follow a teaching format that she developed.



Drafting Effective and Enforceable Non-Compete Agreements: General Guidelines to Keep in Mind

Employee Non-compete Agreements in Utah - YouTube

Here's an article that talks about a yoga studio:

Yoga Journal - Yoga Business - The Yoga Teacher's Employment Contract - Part 3

Also, I agree that if the contract specifically, states 25 miles within a specific studio, you should be okay as long as you comply with that with the exact wording. If the contract didn't say within 25 miles of wherever I have a teacher (which would probably be unreasonable), I don't the other studio has a leg to stand on.

Originally Posted by MaeLa

I do not know if she is reading this.

I hope she is, and I hope it opens her eyes. Otherwise, there's always the 3 a.m. zil brigade!