Odd Contracting Question

[Dabetes]

Currently I am an employee agent at a independent agency and they recently had us sign a non-compete/non-solicit agreement. This agreement says I cannot sell health/life insurance for one year within 120 miles of the main office. Is it ethical/doable to start my own agency and sell only to states that are not my home state until that one year runs out? I’m in Wisconsin.

The reason I ask this question is when I originally took the job almost 5 years ago they said that we would become independent agents ourselves but within the last year that took that option away from us.

Thanks for any answer.

 

[Rossat]

Personally, it's doable but will be harder. Most clients like that I'm local. My more retainable clients that is. Perhaps the contract is only for contracts they hold..? Can you sell other MA/PDP/MAPD for carriers you were NOT contracted with through them?

 

[wehotex]

Currently I am an employee agent at a independent agency and they recently had us sign a non-compete/non-solicit agreement. This agreement says I cannot sell health/life insurance for one year within 120 miles of the main office. Is it ethical/doable to start my own agency and sell only to states that are not my home state until that one year runs out? I’m in Wisconsin.

The reason I ask this question is when I originally took the job almost 5 years ago they said that we would become independent agents ourselves but within the last year that took that option away from us.

Thanks for any answer.

Did they ask you to sign a new contract of employment that changed the non-compete rules in the 5th year? Maybe your Dept of Insurance could help you with this question?

 

[fed up]

You cant solicit their business but they cant stop you from making a living. I dont think they can enforce something so broad

 

[somarco]

recently had us sign a non-compete/non-solicit agreement. This agreement says I cannot sell health/life insurance for one year within 120 miles of the main office.

What would have happened if you refused to sign?

If you sell by phone your "territory" is unlimited.

It really doesn't matter if the agreement is "enforceable" or not. If they decide to sue you then it becomes a matter of who has deeper pockets.

Either you will defend the suit or they will move for a summary judgement and you will have to pay them for the privilege of working there for 5 years.

 

[Dabetes]

What would have happened if you refused to sign?

If you sell by phone your "territory" is unlimited.

It really doesn't matter if the agreement is "enforceable" or not. If they decide to sue you then it becomes a matter of who has deeper pockets.

Either you will defend the suit or they will move for a summary judgement and you will have to pay them for the privilege of working there for 5 years.

My boss said sign this or you can clean out your office and leave.
I’m looking over the non-compete and it says I cannot sell restricted services to any business with 120 miles of the company’s place of business.

I wonder if I can get by this if I incorporate my company in another state? It’s a lot to think about.

They didn’t have us sign a non-compete/non-solicit until January of this year.

 

[adjusterjack]

Unless you have a contract that says otherwise, it's perfectly legal to compel you to sign it under threat of termination.

However, the question is whether it is enforceable or not.

The one year limit is probably enforceable. The 120 mile limit maybe not.

Here's an article about non-compete agreements in Wisconsin:

Non Compete Agreement Wisconsin: Everything You Need to Know

Somarco made a good point. You are likely to be sued. Defense will be costly.

And, no, incorporating in another state won't help. It's where your customers are that counts.

As a victim of a non-compete agreement (long ago) I can tell you that you'd have been better off refusing to sign even if it got you terminated. Too late now.

 

[Dabetes]

Personally, it's doable but will be harder. Most clients like that I'm local. My more retainable clients that is. Perhaps the contract is only for contracts they hold..? Can you sell other MA/PDP/MAPD for carriers you were NOT contracted with through them?

Per the contract no. It is considered a restrictive service to help/advise anyone on health/life insurance within 120 miles of the business for 1 year.

 

[Dabetes]

Unless you have a contract that says otherwise, it's perfectly legal to compel you to sign it under threat of termination.

However, the question is whether it is enforceable or not.

The one year limit is probably enforceable. The 120 mile limit maybe not.

Here's an article about non-compete agreements in Wisconsin:

Non Compete Agreement Wisconsin: Everything You Need to Know

Somarco made a good point. You are likely to be sued. Defense will be costly.

And, no, incorporating in another state won't help. It's where your customers are that counts.

As a victim of a non-compete agreement (long ago) I can tell you that you'd have been better off refusing to sign even if it got you terminated. Too late now.

Thank you for the information.

I would be prospecting clients outside of that 120 mile radius. I wouldn’t even sell in the states they are in until that one year is up.

 

[vic120]

My boss said sign this or you can clean out your office and leave.
I’m looking over the non-compete and it says I cannot sell restricted services to any business with 120 miles of the company’s place of business.

I wonder if I can get by this if I incorporate my company in another state? It’s a lot to think about.

They didn’t have us sign a non-compete/non-solicit until January of this year.

I've seen when I worked at brokerage the time they first started with changes with the if you don't like it then leave attitude Could be the writing on the wall

In my experience,It does not end with one thing, and it does not work well for long time employees

By the time I left only half the original employees still there and most of those were going to leave soon after

but by that time there were many less qualified hires more like body's on the phone that just follows the script for way less money