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COA: Break in employment triggered non-compete agreement

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A man who joined a competitor immediately after his employment ended at another company did not violate a non-compete agreement, the Indiana Court of Appeals ruled Thursday. The judges agreed that a 10-day break in employment with the prior employer two years earlier constituted the beginning of his non-compete agreement, and his new job falls outside that two-year non-compete restriction.

Carey Helmuth worked at Nightingale Home Healthcare Inc. as a patient advocate. When he joined the company Jan. 24, 2008, he signed a non-compete agreement barring him from working with a company in a similar field and in a similar position for two years after separation from the company.

In October 2009, Nightingale fired him. But 10 days later, the company offered to revoke the termination and allow him to return to his prior position. He returned to work for Nightingale Oct. 26, 2009, but did not sign a new non-compete agreement. Helmuth’s employment ended with Nightingale March 5, 2012, and he began working with Physiocare Home Healthcare LLC as a patient advocate almost immediately.

Nightingale sued Helmuth and its competitor, arguing he breached the non-compete agreement. The trial court ruled in favor of Helmuth and Physiocare, agreeing with the defendants that the non-compete agreement expired in October of 2011 due to the break in Helmuth’s employment.

“Despite Nightingale’s characterization of Helmuth’s rehire as a revocation and rescission of the previous termination, we find that, based on the evidence, Nightingale’s conduct is more properly defined as a separation from the company which was unconditional and intended to operate as a permanent termination of the employment relationship between Nightingale and Helmuth,” Judge Patricia Riley wrote in Nightingale Home Healthcare, Inc. v. Carey Helmuth and Physiocare Home Healthcare, LLC, 29A04-1403-PL-121.

“Mindful that non-compete agreements are disfavored by law and strictly construed against the employer, we conclude that there is no issue of material fact that Helmuth was indeed separated from Nightingale on October 16, 2009, which marked the starting point of the two-year restrictive period of the Non-Compete Agreement,” she continued. “Absent the execution of a new non-compete agreement on October 26, 2009 or a written extension of the prior Non-Compete Agreement, Helmuth’s restrictive period ended on or about October 16, 2011. Therefore, at the time of entering into an employment relationship with Physiocare in May of 2012, Helmuth was no longer bound by the provisions of the Non-Compete Agreement.”


 

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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