Question About Non Compete Agreements

[somarco]

Most companies don't have the time or resources to pursue legal action

Only thing that matters is do they have deeper pockets than the agent.

Not so difficult or expensive to file suit then move for summary judgement when the agent fails to defend themselves.

 

[hesse]

have an agent leave and take a few couple hundred thousand dollar accounts with them and you will know why some require non competes.

 

[OldIA]

Agent contracts: non competes, non soliciting, anti piracy, whatever you want to call them can be very strict and completely exploit the employee or 1099 agent, etc. I won't sign any contract without fully understanding and accepting all the terms even though a position may be dependent upon doing so, though negotiation is usually at least a consideration. I've had agents want me to sign over my telephone data, leads, position/compensation negotiating terms, termination procedures, even the ability to work in the insurance industry in my entire state if I left. The contracts are becoming tools of economic servitude. Some states frown upon them and others fully support them. I count them all as enforceable because I would not want to be forced to defend myself in court if challenged.

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have an agent leave and take a few couple hundred thousand dollar accounts with them and you will know why some require non competes.

This basic and necessary agency protection is being exploited. I have turned down several agent contracts because of very unreasonable terms. The worst is when you start a position with one contract and get going, only to have an even stricter contract presented to you down the road. I've had this happen twice so far. I know I am blessed to be able to walk away from unscrupulous people who will try to rip you off, but people just getting started in the industry should know what is going on. Agreeing to not solicit the agent's clients is reasonable. Prohibiting a worker from escaping a bad work environment for a better opportunity is unreasonable, infuriating actually.

 

[skeet282]

Best advice I can give is see an attorney. They will know what's good for your state. But be careful. Non competes and non solicits can be very tricky. Just be prepared to pay the price if you violate the agreement.

 

[somarco]

It is not necessary for you to violate the terms of a non-compete, intentionally or otherwise, before you can be sued.

 

[Cornelius]

Use your LegalShield membership. Tap the app.

 

[OldIA]

Use your LegalShield membership. Tap the app.

Legal Shield is terrible in Virginia. Virginia lawyers and lawmakers have created a monopoly. Legal Shield (Prepaid Legal, etc.) is prohibited from providing legal advice unless legal representation is retained.

 

[Cornelius]

OLDIA I just looked at the state of Virginia contract and what you say doesn't seem to be how it works. I'm not going to get into a LS debate because it goes no where as many have never read the associate agreement, looked at compensation or read the state specific membership contracts.

So to stay on topic the OP is asking a legal contract question which should be answered by an Attorney.

 

[OldIA]

OLDIA I just looked at the state of Virginia contract and what you say doesn't seem to be how it works. I'm not going to get into a LS debate because it goes no where as many have never read the associate agreement, looked at compensation or read the state specific membership contracts.

So to stay on topic the OP is asking a legal contract question which should be answered by an Attorney.

Check Virginia law. LS contract is useless when it isn't compliant with VA law. LS is a waste of money in Virginia and is nothing more than a coupon for participating lawyers.

On topic, All non agent contracts are enforceable. Don't sign one if you don't intend on following it.