Non Compete & Non Solicitation

JimYoung

Expert
40
I signed a non compete and non solicitation agreement before employment. If I am currently a sales manager at NWM and I left for a sales manager position at Guardian, I am not allowed to replace any policies I have sold for two years and I can not solicit any of my team to go over to Guardian with me as well. However, I know that when I leave, they will come regardless.

What is going to happen if I TRULY did not solicit for them to come with me as well?
 
I signed a non compete and non solicitation agreement before employment. If I am currently a sales manager at NWM and I left for a sales manager position at Guardian, I am not allowed to replace any policies I have sold for two years and I can not solicit any of my team to go over to Guardian with me as well. However, I know that when I leave, they will come regardless.

What is going to happen if I TRULY did not solicit for them to come with me as well?
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If they follow you, you would potentially be violating the 2 yr non replacement stipulation.

As for additional policies, if you don't solicit, no problem, but I would ask someone at Guardian HQ.
 
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If they follow you, you would potentially be violating the 2 yr non replacement stipulation.

As for additional policies, if you don't solicit, no problem, but I would ask someone at Guardian HQ.

If they follow, how would that be a violation? Would never hold up in court. Those that follow would say they did it on their own and no court is going to restrict someone's employment because someone else signed a non-solicitation.
 
Anyone on your team can voluntarily quit and choose another firm at anytime.

If they leave the firm, someone at the firm will ask them why they are leaving.

The main part will be "Did you entice them to leave NWM to join you at Guardian by promising extra benefits or compensation?"

The answer they need to hear is "I like my sales manager. I want to work with him - regardless of firm. He has not promised me any additional perks or incentives to join him. I would rather not work with a new or any existing sales manager at the firm."

As long as you don't post a public memo or email saying that you're leaving and this is where you can find me and that you'd promise a position... etc.

If you want your team to be able to contact you after you leave, make sure they have your personal email & phone numbers. If they really want to work with you, they have the means to contact you.
 
What does your non-compete say about this situation?

I think you have to be careful even if clients willingly want to come to you your ex company may take the position of running up your legal bills to defend your position.
 
I am not as concerned about the clients, more of the entire team leaving. If a team of 15 agents left an agency, documented voluntarily, there wouldn't be any repercussion?
 
If they follow, how would that be a violation? Would never hold up in court.

I must assume you have never had to fight an alleged non-compete violation.

even if clients willingly want to come to you your ex company may take the position of running up your legal bills to defend your position.

There is a response from someone who understands.

If a team of 15 agents left an agency, documented voluntarily, there wouldn't be any repercussion?

Actions have consequences, even if you are innocent. It cost money to prove you did not violate the agreement.

Does NWM have more money to pursue this than you do?

That is a rhetorical question.
 
However, I know that when I leave, they will come regardless.

What is going to happen if I TRULY did not solicit for them to come with me as well?

No...they won't - unless you somehow contact all of them saying something like "I'm here now" which can indeed be construed as a violation of your non-complete.

Basically, you simply go away. If the clients are not yours then they are not yours. After you leave if they contact you then you'd need to respond with "I'm no longer your agent, let me give you this number...."

You can be smug and say "they all followed" - better have deep pockets to battle it in court.
 
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This sort of thing happens all the time. Guardian has dealt with this sort of thing numerous times, as have a lot of the big insurance companies. In fact, I'm betting they are expecting a high number of your current agents to follow you, this is why they seek out people like you.

Is there a potential legal battle? Maybe, but insurance companies don't file suits just to piss people off. If they don't believe their is any pecuniary gain (or indemnification) in the lawsuit, they aren't going to pursue it.
 
Just some common sense here. Of course, you may run into a GA lacking in common sense, a corporate attorney is having a bad day, etc.

They expect to see some loss of agents or replacements of policies. If no agents left and no policyholders left, then they are good to be rid of you, apparently no one had much loyalty to you.

What is going to get you in trouble is a systematic replacement of policies, or a mass exodus of agents. That is almost certainly going to have been instigated by you. Half or more of your clients and agents aren't going to follow you without some action on your part. Probably substantially less than that.
 
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