Question

Business law: Kroner LLP, a public accounting firm, through its HR manager Jones, enters into an agreement to hire Wilson as a staff accountant for a compensation of $50,000 a year. The agreement contains a clause that states if Wilson leaves the firm within 2 years she cannot work for “another firm doing any similar accounting work” she did for Kroner. After 16 months Wilson is approached by Ruble Corporation and offered a job for $75,000 a year to be its accounting manager. Wilson wants to accept the offer, but is concerned about the clause limiting her employment during the two year period. Address all the legal consequences of the fact pattern as they relate to Wilson’s evaluation of whether she can take the job offer with Ruble.

Answer 1

Guidance on writing answer.

It is the case of non compete agreements where an employer may ask employee to not work for competitor for a specific duration after leaving their company and should define in the agreement the work or service to be restricted with the geographical area. This is done to prevent an employee to leave the company and avoid sharing trade secrets with the competitor.

In the given case Kroner, LLP is an accounting firm and has agreement with wilson an accounting staff to not work for any similar firm if she leaves within 2 years. She has a offer from Ruble Corporation where she has role of accounting manager and she has not completed 2 years at Kroner.

If Ruble is not a competitor of Kroner i.e. not involved in similar work she can join the corporation. Also agreement should clearly disclose its competitors and duration with scope and geographical area which seems to be missing and not admissible in court.

Hope this helps:)