KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Comment on local competitor stealing accounts June 7, 2024 ****************************** Comment on local competitor stealing accounts from article on May 31, 2024 ****************************** Ken In regard to former employees stealing accounts. I see it as un-ethical at best for an ex employee to attempt to poach accounts from a former employer. From the employers perspective, steps are easily taken to prevent Central Station access to accounts, and logins to other platforms such as Alarm.com are easily de-activated. These things should be done automatically upon termination. From the employees perspective, the former employee should not be expected to give up a source of making a living through a non-compete agreement. For instance, I have nearly 25 years in the alarm/access/CCTV business and would be very hesitant to sign any non-compete at this stage that would prevent me from continuing in that field if I were to leave my current position. LD ************************************ Ken Does the FTC Ruling include non competes between dealers and contractors? So if a customer of said dealer is out of contract and asks me to takeover I should be good since its not law law SK ************************************** Ken We have a local competitor that appears to be targeting our accounts. We think it may have started from an angry customer of ours. Since they must know they are under contract with us, isn't that illegal for them to directly target them? One of our customers said he saw about 10 of our other customers at a gathering and this sales rep was directly soliciting them. Not sure if this falls under our monthly concierge services but if so, what can be done? DH **************************** Response **************************** The FTC ruling is not law yet. K&K has not removed the non-compete provisions in the Employment Agreement and you should have all your employees sign this Employment Agreement. K&K will update the agreement for your state and we will consider the FTC ruling if and when it takes effect. Legitimate competition cannot be stopped, except a seller cannot compete with accounts it sells to a buyer. Competition that employs “dirty tricks” can be enjoined and you can seek damages, though that kind of lawsuit is not easy to pursue; it’s costly and time consuming, so the damages should be significant, or expected to be significant if you don’t do something to nip it in the bud. Non-compete agreements should prevent improper use of your proprietary and confidential information, and should be used to protect your business. Unnecessary restraints have never been favored and rarely enforced. To some extent this requires that each case be reviewed and analyzed on its own to determine the potential damage to each side of the dispute. Employment Law is complex. Join the K&K Concierge Program for access to K&K Employment Department lawyers for guidance. If you prefer to not join the Concierge Program and would prefer to pay “full fare” K&K does appreciate your confidence and business. I strongly suggest you join the Concierge Program, for employment issues as well as all the other benefits offered, especially discounts on all Kirschenbaum Contracts™. Trust me, I see the rip off contract forms and home made contracts all the time and you’re not doing yourself any favors using these forms; update to the gold standard contracts in the industry. ***************************** STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
