I signed an offer letter to the company that was my second choice (Company A), it doesn’t say anything in particular about me moving to a competitor but does say I cannot deal with clients of Company A. Company B, my first choice offered me today- they beat Company A’s number by 25% which is just on the base number. Didn’t get too specific with regards to bonus but I am thinking 6 in one half dozen… Company B is a far better all around shop with regards to repuation throughout and their research product. The team at Company B is good, that is the team I would be working with. However the team at A is alright skill wise but I like them a lot. Since I signed, I know Company A will be upset but I think they will understand my decision. Has anyone ever dealt with a similar situation? What does me signing the offer letter at A preclude me from doing?
I would be surprised if any limitations on their customer base are enforceable…depending on location. Particularly if you havent received any compensation for giving that and then depending on ohow specificly that is defined. I have signed an offer letter in the past and then backed out after. It didnt contain any non-compete clause though, but my only real issue would have been if I had received any sign-on bonus…which at the time I hadnt yet received so there was nothing to pay back.
I’ve done something similar and Company A was disappointed but nevertheless understood my rationale for going with Company B. If you haven’t even started with Company A I’m not sure signing the offer letter with Company B will preclude you from doing anything. It’s hard to say without seeing the exact terms of the contract or knowing how vindictive Company A will be.
Might want to seek some legal advice on potential non-competes. For a free opinion, check out www.avvo.com and post your inquiry there - that site is a good resource. With that said, I’d say the best thing to do is to have an honest conversation with the first company and see where things go. Sometimes if you depart on good terms + given your relatively short tenure there, they might just leave you alone. However, they could refuse to make good on stock options and other stuff they owe you, in the event that stuff like that may apply to you.
It says “for six months following your resignation, you agree not to solicit or participate in the solicitation of any part of the business of the company or its affiliates from any person or entity which was a client of the company or its affiliates at the time of your resignation or termination. for 3 months following the date of your resignation you cannot participate or solicit business from prospective clients.” What u think?
i’d tell them you just recieved another offer for 25% above what they gave you and that you’d like to withdraw your acceptance. you haven’t done any “work” for them so there’s really nothing for them to hang on to.
If you only signed the offer letter and hadnt really started working, I dont see much issue. Doesnt mean they cant get pissed and sue you, just doubt they can gain much. I still cant imagine not soliciting prospective clients, without more specifically defining that, would hold too much weight. Did you receive any additional compensation from this? I.e. signing bonus, options, etc? They very well could go after that and almost certainly you should expect to repay.
No signing or anything like that.
I’m not an attorney, don’t play one on TV and didn’t stay at a Holiday Inn Express last night, but I would think that they would have to provide you with a list of their current and prospective clients for you to even be able to abide by the letter, otherwise you would have to guess who you could talk to and who you couldn’t talk to. It’s not like you have network access to their client lists yet. I don’t imagine they care to share that information with you, which means you can’t possibly abide by the letter and therefore it cannot be enforced. Just my no qualifications opinion though.
You haven’t started, just withdraw your acceptance. Does the offer letter state that your employment is “at will”? If it does then there’s nothing they can do because they can also rescind their offer with no recourse to you, unless you are a minority but that’s a different story.
Zesty, why the “unless you are a minority” comment? I’m a minority, and have seen a lot of minorities laid off during the most recent recession with no recourse. Actually I saw more minorities laid off than non-minorities…it’s tough out there for everyone. Let your performance speak for itself, and not the color of your skin. Let’s not make this a racial issue. Thanks.
He was only saying that it’s more complicated in laying off a minority because of discrimination complications. “Let your performance speak for itself, and not the color of your skin” O.G. the MLK Jr of Analyst Forum!
minorities have it sooooooooooooo easy …