Careers - Firing - Beware of Noncompete Agreements | eWeek

Beware of Noncompete Agreements

Written By
Donald Sears
Donald Sears
Feb 22, 2010
2 minute read
eWeek content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

Even with the economy all topsy-turvy, don’t be surprised if your technology company comes after you if you go to a rival–even if your boss and department heads give you a verbal blessing when you find a new gig.

Case in point: Daniel Aderhold, a 31-year Motorola sales executive (a vice president) who was laid off last May, but took a job with rival Ericsson after Motorola did not land a deal with Verizon, according to a report by Workforce Management. His problem? Aderhold had signed a confidentiality agreement years back that included a noncompete clause.

“A year ago, Motorola lost out to Ericsson and Alcatel Lucent on a bid to become a supplier of fourth-generation network equipment, known as LTE or long-term evolution, to Verizon. The loss was a serious blow to the viability and value of Motorola’s network equipment business…Aderhold says that before taking a job with Ericsson in mid-June, he cleared it with Fred Wright, senior vice president of Motorola’s network business. “Wright congratulated me on finding a new position, plainly indicated he saw no problem with my employment at Ericsson, as I would not be competing with Motorola since it had recently lost the bid to be an approved LTE vendor to Verizon Wireless,” Aderhold’s affidavit states.“

Well, someone in legal or someone in another department at Motorola saw things a bit differently and does not want Ericsson to use whatever talents–and product strategy information–Aderhold may have in his knowledge bank.

The problem is that the agreement is getting in the way of allowing Aderhold to earn a living, especially knowing how tight hiring is at most levels in technology companies lately.

It’s a common situation to see workers go to competitors in technology, but as you climb the ladder, be aware of the stress and pain that may come, years down the road when you need a gig, but signed an agreement that limits your options.

Note: One very good thing is California-based companies (think Silicon Valley) are not allowed to issue noncompete clauses. The problem is that if you worked for a company outside of California but want to work for one, a judge may uphold the law in another state. Last year, an EMC employee who tried to move over to HP was stopped from taking the job by a California judge.

eWeek Logo

eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site's focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.