WHO PAYS FOR NON-COMPETE LITIGATION?
Maybe you are the best in your industry – and highly sought after expert on X. You get a call from company ABC INC. LLC, who says they know you are the best and they want to hire you. They offer you $1,000,000 more per year and great stock options. Your ego has been thoroughly inflated and you say, “Fellas, sounds great but I have a non-compete agreement.” (Which as an aside, is always good to disclose sooner rather than later).
ABC Inc., LLC says “No problem, we figured you would, we will take care of it.”
Well, hot shot expert in industry X – before you jump ship, we recommend you get something in writing, or more specific as to how ABC INC. LLC is going to “take care of it.”
1. Help you buy out your non-compete?
2. Still give you a job if/when you get sued?
3. Pay for your attorneys fees?
4. Pay you to not work during your non-compete agreement so you are not in breach?
Starbucks executive Twohig just went to Dunkin Donuts, allegedly in violation of his non-compete. Let me bet the farm, that he knew exactly what Dunkin was willing to do to assist him in the transition.
You would had to jump ship and begin your transition to a new job, only to hear that ABC’s new board (well, techinically they don’t have a board if they are an LLC) is risk averse and unwilling to pay for your attorneys fees.