How enforceable is noncompete?
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Well, I’m a recent Edward Jones cast-off. Can-sell date of September 2008.
After 4 months, I had +/-$250,000 in assets under management, but had upwards of $800,000 of assets identified and appointments made. The only thing I didn't have was net commission standard, which was established well before the downturn in fall 2008. I have a new Broker/Dealer interested in me, and several time-sensitive prospects. However, as Jones terminated me, how enforceable is the non-compete (in other words, I acted in good faith in regards to the 3-year "pay your dues" timetable they ask for...but they ended my employment before I could)? The way I read the wording is that I will never EVER be able to work in insurance and/or securities for the rest of my life, unless I'm willing to pay $75,000 to Jones. It also seems to read that it wouldn't matter if I had these licenses before coming on-board...I'm still permanently out of the industry. Has anyone had any experience in this matter?Consult an attorney. But I can tell you, you are not banned from the industry. And good luck to them enforcing a non-compete when they fired you after 4 months. My guess - don't worry about it. But consult an attorney. And talk to counsel at your new BD.
You are fine… they fired you…6 people did it on purpose in my class so they could leave… You will get a letter registered mail from the Law firm they own, that will show you your contract that you signed and how you “can’t” solicit clients for 1 year…
Go and be free... but it's still about the contacts.. what are you doing that works?IMHO,
If you couldnt make it at Jones, seek another industry...something more recession/depression resistant. Jones quotas are some of the lowest in the industryJust because he couldn’t make it at Jones, doesn’t mean he should leave the industry. I know quite a few people who were sucking it at Eddie J, and now are doing quite well for themselves, either at the bank or indy. You just have to have a certain personality at Jones… and you have to BELIEVE that the crap they are spewing at you is true.
Nothing like blind faith to ruin a marriage and starve your family!
Clang - in all seriousness, Jones can either be magnanimous or vindictive. It’s really quite interesting. I would almost think the big green machine were alive and bipolar.
When I left Jones, I got a couple of letters from some law firm telling me that I couldn’t solicit their clients (along with a copy of the contract) and they told me to take the files I stole back to my old office and they also said that I wasn’t registered, so it was illegal for me to even talk to them - interestingly enough. I almost believed them and had to double check with the SEC and NASD. That would have been embarassing!
Anyway. Be careful, but do what you have to. Times are tough. You need to do what you can to put food on the table - screw them.
[quote=clang664]Well, I’m a recent Edward Jones cast-off. Can-sell date of September 2008.
After 4 months, I had +/-$250,000 in assets under management, but had upwards of $800,000 of assets identified and appointments made. The only thing I didn't have was net commission standard, which was established well before the downturn in fall 2008. I have a new Broker/Dealer interested in me, and several time-sensitive prospects. However, as Jones terminated me, how enforceable is the non-compete (in other words, I acted in good faith in regards to the 3-year "pay your dues" timetable they ask for...but they ended my employment before I could)? The way I read the wording is that I will never EVER be able to work in insurance and/or securities for the rest of my life, unless I'm willing to pay $75,000 to Jones. It also seems to read that it wouldn't matter if I had these licenses before coming on-board...I'm still permanently out of the industry. Has anyone had any experience in this matter?[/quote] What are you seriously worried about a noncompete over 250K in assets???? Wow!!icecold,
I see you've read alot of my posts. You even called me helpful. Yes the clocks still ticking. Good luck lil' rookie. PM me if you have any further comments or questions For the others, please read my posts from the past 2 years if you have any interest in icecold's statements One final word of advice for ice. For a kid with about a year of industry experience: Get out, get productive, quit playing on this forum..over 2000 posts. Get a life. You are done here.I think you are in good shape, but I agree you should talk to an attorney. Not the general practice guy either. You need to talk to an attorney specializing in the securities industry. If they (Jones) hasn’t already hit you with a TRO (temporary restraining order) you are probably ok. Also, as someone else mentioned, the BD that is recruiting you should supply with some legal advice. Good Luck!