Shelly is a new HIM graduate. She has been offered a position as an EHR trainer
ID: 391655 • Letter: S
Question
Shelly is a new HIM graduate. She has been offered a position as an EHR trainer with a reputable EHR vendor, AutoDoc, which provides an EHR product to physician-office practices. As a condition of her employment with AutoDoc, Shelly is being asked to sign a noncompete agreement. She is concerned that she will be limiting a considerable number of future career opportunities if she signs the agreement and later leaves her employment with AutoDoc. 1. What types of limits are likely being placed on shelly if she signs the noncompete agreement? 2. Is AutoDoc violating the law by imposing a noncompete agreement? 3. If AutoDoc's noncompete agreement was legally challenged, what would a court consider in determining whether it is enforceable or not? 4. What would constitute an unnecessarily broad noncompete agreement? 5. What if AutoDoc will not negotiate on the noncompete agreement, yet Shelly still feels uncomfortable with it because it seems too limiting? 6. What if Shelly accepts employment with AutoDoc, leaves the company, and then works elsewhere in violation of the noncompete agreement she signed? F7 F8 #9 F10 8 456789Explanation / Answer
1. The limits shelly will have to encounter are:
2.No, Autodoc is not violating the law by imposing non compete agreements. Non-compete agreements are considered to be valid contracts between an employer and an employee. Non-Compete agreements are made in order to protect the interests and rights of the employer. There are scenarios in which employees gather all the confidential information from a company which is used to begin a similar business and to use this valuable information (customer data, company data, competitor data, market data,) to compete against the former company.
3.factors considered by the court to check the enforceability.
4.constituents of a broad non compete agreement are:
5. The employer cannot force shelly to sign the non compete agreement. But not signing a non-compete agreement may cost her her job(she may not get hired for that job). Shelly can decide whether she wants to work for the company or to leave. If the agreement seems to be too broad or very much limiting which may result in no work at all once she leaves the company, The court is usually reluctant to choose such cases and shelly can make claims against the company that these were not told upfront. Shelly can receive the advice of an employment lawyer to understand the agreement properly before signing the agreement.
6. The no-compete agreement is valid from the moment it is signed by Shelly and does not necessarily require the company to sue Shelly for it to be active. If she leaves the company and works in violation of the agreement it is at the company's disposal. There are chances that the company may not go against you. But if the company decides to take an action, the company can sue Shelly and file an injunction or seek a restraining order in the court hor violation of the agreement. As her violation of agreement caused the company harm, the court will start procedures immediately. It will be just a matter of days before Sally will have to summon before the court for the hearing. The violation of agreements can lead to losing the job and can restrict to apply for new jobs for a certain period of time.
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