What constitutes the violation of a non-compete agreement if the company was acquired by another company?
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What constitutes the violation of a non-compete agreement if the company was acquired by another company?
I am employed with Company A which was acquired by Company B. I want to work with Company C which has a no-compete agreement with Company B. Company C does not have a no compete with Company A. If I decide to work for Company C, am I violating the non-compete
agreement?
Asked on May 19, 2016 under Employment Labor Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You say that "company C has a no-compete agreement with company B": is it the company (Company C) which has a no-compete or do you have a no-compete?
If company C (but not you) has some agreement with company B to not employ company B employees (or something similar), then if company C employs you, *they* (company C) may be violating their agreement: you are currently (due to the acquisition) a company B employee. So they may not wish to employ you in this case, or, if they do, they could be sued by company B.
You would not be yourself in violation of an agreement which you personally did not sign or otherwise agree to.
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