Non-Compete at the Analyst level
I am about a year and a half in at my firm (lower middle market PE firm in Chicago) and am assessing the non-compete I signed when I joined. I didn’t have anyone look at it which I probably should have. It’s 18 months, is this market?
Moreover, is this enforceable? My research is telling me non-competes are generally for senior level employees and normally around 12 months. Would another firm even consider hiring me with this non-compete?
Not a lawyer, but definitely not market and likely not enforceable unless tied to carry docs
It's very odd for a non-compete for a junior level role. If you end up finding a new role, it may make sense to just let them know you have this non-compete out there right before you sign to see if your next firm would be willing to back you if your current firm tries to enforce this. Given you are an analyst, I wouldn't expect your current firm to try and enforce it if your next firm would step in. It would be a waste of time and money for everyone.
Thanks for all this context, very helpful. By “right before you sign” do you mean go through the interview process and if I receive the offer don’t tell them about this non-compete until right before signing? What if they were to ask during the process?
imo would flag to the recruiter at beginning of process and get their thoughts, but they will likely just tell you that they will / you should raise this later on the process (ie: once you get the offer)
Not market but enforceability depends on the state and contract. In Illinois they ban non competes under $75k salary, so you'd need to rely on this being an unreasonable contract (which 18 months / broad industry sounds like it could be). The FTC rule limiting noncompetes to senior execs only was eventually rescinded.
I'd probably pay $100 for an employment lawyer consultation to look at your specific agreement and see what they think. Typically they can't just say you cannot work in PE for 18 months, they'd need to be reasonable - i.e. you can't work in LMM industrial PE in the Midwest for 12 months
Making an Analyst sign an 18month noncompete is ridiculous.
Also depends on the state you are going to (even if your contracts specified a chosen state of law). If you are going to work in California, non competes from out of state is generally moot (not a lawyer so you should ask one).
Qui ut et est quis deserunt sunt. Ipsam nihil iusto omnis iste. Ut ut quia dolorum modi perspiciatis sit.
Facere voluptas vel quod esse officia et. Cupiditate aspernatur consequuntur aut aliquid minima sint quaerat qui. Harum repellendus nemo illo. Debitis tempora dolorem at similique ab.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...