Accounting Firm Non Compete Agreement

Have you ever seen a non-competitive hiring attempt? I cannot imagine a court imposing this contract too broad, but I see a CPA company that does not want to treat anyone under such an agreement. Source: „Noncompete Agreement,“ The Practicing CPA, Jan.00, AICPA. EDIT: I`m not so worried about going to court or suing, I`m more worried that if companies see the non-compete agreement, they want to make a potential offer or not go any further. I didn`t even think it would be a problem until the national company I interviewed with today asked me if I had a non-competition and they probably had to see a copy at some point. Companies that do not have a non-compete agreement should consult a lawyer to develop an appropriate agreement for the company and relevant government laws. This story shows (1) the importance of competitive competitions and (2) that even experienced buyers make mistakes. If you want to buy a CPA company, make sure that your non-compete agreement protects you if the seller decides to re-enter public accounting. The non-competition agreement should be negotiated and accepted if you and the seller negotiate all terms of sale, such as price, terms of payment and transitional assistance. Talk to a lawyer or contact r/legaladvice. It depends on state law, but a general rule is that a non-compete clause cannot last more than 2 years or cover a geographic area greater than a 50-mile radius of the employer.

James Lane is the founding partner of Bersena Jacobsen Chouest Thomson Blackburn LLP, a boutique process company in Toronto. Its activities include advising and representing CPAs to companies of all sizes in the defence of liability claims and disciplinary hearings, responding to professional standards and conducting investigations, as well as providing practice and professional conduct advice services to CPA companies. E-mail to James jlane@lexcanada.com. Accountants often have personal connections to their clients because of the nature of their practice. When an accountant leaves the workplace, it is not uncommon to have clients who wish to continue their activities with the accountant. Non-competitive agreements between partners of an audit firm are more likely to be implemented against the outgoing partner, as partners have the same bargaining power to develop such agreements. Do not use proprietary or confidential information (including processes and know-how), whether it is the company and its customers, their customers and their business customers, nor disclose to third parties (including a new business) and return to the Company, at the end of their activities, all documents and computer files containing such proprietary or confidential information. WILL IT BE ENFORCEABLE? As part of a non-competition obligation, workers undertake not to use certain resources or to participate in a specified contract for a certain period of time after their termination or resignation.

Applicability varies from state to state, and courts generally maintain only the provisions deemed necessary to protect the „eligible“ interests of a business or business (see „What covers agreements“). Be specific in terms of equipment, technology, strategy, sales prospects and other relevant proprietary information,“ explains CCH Business Owner`s Toolkit (see „Recommended Reading“).