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View Full Version : OT: A question for you lawyer types....


Fat Elvis
09-28-2005, 07:36 AM
Does anyone know how the enforcement of a no competition clause by a 501(c)3 organization would affect that entity's status as a not for profit charitable organization or foundation?

Just curious....

Yosef_Malkovitch
09-28-2005, 09:07 AM
I did some work on 501(c)(3) issues this summer. I think what you're asking would require some research and the answer would probably depend upon the specifics of the situation (assuming there are any rules regarding the organizations and enforcement of clauses like this).

I'd say it's very unlikely someone would know the answer to this off the top of his/her head.

Phobia
09-28-2005, 09:08 AM
State?

go bo
09-28-2005, 10:11 AM
anything is possible and i'm not an expert in that field, but i can't imagine how enforcing a no compete would affect the organization's status...

now the general enforcability of a no compete is subject to a number of exceptions, such as being unenforceable with regard to an attorney (interesting how lawyers take care of themselves, isn't it?)...

Fat Elvis
09-28-2005, 02:37 PM
State?

Kansas

Phobia
09-28-2005, 02:41 PM
Kansas

I don't know Kansas right to work law, but I do know that non-competes are almost impossible to enforce in Texas due to their right to work status. I'd imagine most non-competes are difficult to enforce but I have no practical experience in the matter.

I don't know what a non-compete for an employee has to do with a 501c3 status. So long as the organization meets all the federally mandated requirements for 501c3, what do they care about employee policies?