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Non-compete Clauses You work in Arizona for a company that is national in scope, selling in all 50 states. As part of the employee orientation,

Non-compete Clauses

  1. You work in Arizona for a company that is national in scope, selling in all 50 states. As part of the employee orientation, you are required to sign a contract in which it states that if you leave the company's employ voluntarily, you will not be able to be employed or provide services for any company that is in competition with your current company's geographic area for one year after leaving. Two years into your employment with the company, you are invited to represent them at a trade show in Dallas, where you meet a Houston, TX based company that sells competitive items. They offer you a similar job and a $10,000 increase over your current compensation and offer to pay for your move to Houston. You have family in Houston, so this is attractive. What are the considerations a court would weigh in looking at whether the non-compete is enforceable? In weighing those considerations, do you think you can take the new job? Would your answer be different if you worked for the company in California and that is where you signed the non-compete clause?
  2. Same facts as above, with this difference. A year ago, the company ushered you into a stock program that only the top 10% of employees get; it distributes company stock on an annual basis to you. You were asked to again sign the above non-compete as a condition of getting the stock, and you received a distribution already. Can you take the new job? Why or why not? Why is this different than the question above?
  3. You are a manager in a California office of a major tv network, and are responsible for initiating an intern hiring for the summer that has never been done before by your company. Your supervisor has entrusted you with working with the human resource department to come up with the right paperwork for the interns. Human Resources wants to use the same paperwork with the interns that are used for all new hires, which includes a traditional non-compete clause. Make an ethical argument for OR against the use of those non-compete clauses with interns.

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