{"id":36858,"date":"2015-05-28t05:00:01","date_gmt":"2015-05-28t09:00:01","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=36858"},"modified":"2019-03-01t08:05:47","modified_gmt":"2019-03-01t13:05:47","slug":"can-partners-compete-leave","status":"publish","type":"post","link":"\/\/www.g005e.com\/2015\/05\/28\/can-partners-compete-leave\/","title":{"rendered":"can partners compete after they leave? maybe."},"content":{"rendered":"<p id=\"docs-internal-guid-47a8bfc9-1fd8-1d86-a4bc-441290b5eb9b\" dir=\"ltr\"><strong><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-41173\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-290x433.jpg\" alt=\"businessman with fingers crossed behind back\" width=\"290\" height=\"433\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-290x433.jpg 290w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165.jpg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165.jpg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-590x881.jpg 590w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-97x145.jpg 97w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-127x190.jpg 127w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165.jpg 1071w\" sizes=\"auto, (max-width: 290px) 100vw, 290px\" \/><\/a>bonus: sample non-solicitation agreement.<\/strong><\/p>\n<p dir=\"ltr\"><em>by marc rosenberg<\/em><br \/>\n<em> <a href=\"\/\/www.g005e.com\/shop\/retirement-buyout\/\">retirements &amp; buyouts<\/a><\/em><\/p>\n<p>a non-compete covenant prohibits departed partners from joining another cpa firm or creating their own firm within a radius of a specified number of miles from the firm, within a specified period of time after their departure.<\/p>\n<p>increasingly, firms are writing and enforcing tougher and tighter non-compete clauses.<\/p>\n<p>one of the key tests that courts have used in ruling on the enforceability of non-compete agreements (different from non-solicitation) is the extent to which such agreements prevent the departing partner from earning a living.<\/p>\n<p style=\"padding-left: 30px\"><em><b>more on retirement:<\/b><b> <\/b><a href=\"\/\/www.g005e.com\/2015\/05\/21\/disability-far-complex-death\/\">disability is far more complex than death<\/a> | <a href=\"\/\/www.g005e.com\/2015\/04\/30\/6-ways-leave-cpa-firm-retirements-just-1\/\">6 ways to leave a cpa firm (retirement\u2019s just 1)<\/a> | <a href=\"\/\/www.g005e.com\/2015\/04\/23\/juggle-tax-considerations-retirement-benefits\/\">how to juggle tax considerations for partner retirement benefits<\/a> | <a href=\"\/\/www.g005e.com\/2015\/04\/06\/mandatory-retirement-4-reasons-firm-comes-first\/\">mandatory retirement? 4 reasons the firm comes first<\/a> | <a href=\"\/\/www.g005e.com\/2015\/03\/26\/transition-clients-retiring-partners\/\">how to transition clients from retiring partners<\/a> | <a href=\"\/\/www.g005e.com\/2015\/03\/12\/retirement-plan-funding-funding\/\">retirement plan funding? what funding?<\/a> | <a href=\"\/\/www.g005e.com\/2015\/02\/12\/retiring-partners-take-specialty\/\">when retiring partners take a specialty with them<\/a> | <a href=\"\/\/www.g005e.com\/2014\/12\/18\/clients-retirement-rosenberg\/\">clients leaving? time to reduce retirement benefits<\/a> | <a href=\"\/\/www.g005e.com\/2014\/11\/20\/partners-may-balk-at-guaranteeing-retirement-obligations\/\">partners may balk at guaranteeing retirement obligations<\/a><\/em><\/p>\n<p>the vast majority of u.s firms are local practices located in areas with many competing firms. if a partner leaves to join another firm and does not attempt to take clients, it is very difficult to claim that the departing partner will substantially and irreparably damage the interests and the value of the firm.<\/p>\n<p> <a href=\"\/\/www.g005e.com\/2015\/05\/28\/can-partners-compete-leave\/#more-36858\" class=\"more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p id=\"docs-internal-guid-47a8bfc9-1fd8-1d86-a4bc-441290b5eb9b\" dir=\"ltr\"><strong><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-41173\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-290x433.jpg\" alt=\"businessman with fingers crossed behind back\" width=\"290\" height=\"433\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-290x433.jpg 290w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165.jpg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165.jpg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-590x881.jpg 590w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-97x145.jpg 97w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165-127x190.jpg 127w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/fingerscrossedbehindback_dollarphotoclub_79404165.jpg 1071w\" sizes=\"auto, (max-width: 290px) 100vw, 290px\" \/><\/a>bonus: sample non-solicitation agreement.<\/strong><\/p>\n<p dir=\"ltr\"><em>by marc rosenberg<\/em><br \/>\n<em> <a href=\"\/\/www.g005e.com\/shop\/retirement-buyout\/\">retirements &amp; buyouts<\/a><\/em><\/p>\n<p>a non-compete covenant prohibits departed partners from joining another cpa firm or creating their own firm within a radius of a specified number of miles from the firm, within a specified period of time after their departure.<\/p>\n<p>increasingly, firms are writing and enforcing tougher and tighter non-compete clauses.<\/p>\n<p>one of the key tests that courts have used in ruling on the enforceability of non-compete agreements (different from non-solicitation) is the extent to which such agreements prevent the departing partner from earning a living.<\/p>\n<p style=\"padding-left: 30px\"><em><b>more on retirement:<\/b><b> <\/b><a href=\"\/\/www.g005e.com\/2015\/05\/21\/disability-far-complex-death\/\">disability is far more complex than death<\/a> | <a href=\"\/\/www.g005e.com\/2015\/04\/30\/6-ways-leave-cpa-firm-retirements-just-1\/\">6 ways to leave a cpa firm (retirement\u2019s just 1)<\/a> | <a href=\"\/\/www.g005e.com\/2015\/04\/23\/juggle-tax-considerations-retirement-benefits\/\">how to juggle tax considerations for partner retirement benefits<\/a> | <a href=\"\/\/www.g005e.com\/2015\/04\/06\/mandatory-retirement-4-reasons-firm-comes-first\/\">mandatory retirement? 4 reasons the firm comes first<\/a> | <a href=\"\/\/www.g005e.com\/2015\/03\/26\/transition-clients-retiring-partners\/\">how to transition clients from retiring partners<\/a> | <a href=\"\/\/www.g005e.com\/2015\/03\/12\/retirement-plan-funding-funding\/\">retirement plan funding? what funding?<\/a> | <a href=\"\/\/www.g005e.com\/2015\/02\/12\/retiring-partners-take-specialty\/\">when retiring partners take a specialty with them<\/a> | <a href=\"\/\/www.g005e.com\/2014\/12\/18\/clients-retirement-rosenberg\/\">clients leaving? time to reduce retirement benefits<\/a> | <a href=\"\/\/www.g005e.com\/2014\/11\/20\/partners-may-balk-at-guaranteeing-retirement-obligations\/\">partners may balk at guaranteeing retirement obligations<\/a><\/em><\/p>\n<p>the vast majority of u.s firms are local practices located in areas with many competing firms. if a partner leaves to join another firm and does not attempt to take clients, it is very difficult to claim that the departing partner will substantially and irreparably damage the interests and the value of the firm.<\/p>\n<p> <a href=\"\/\/www.g005e.com\/2015\/05\/28\/can-partners-compete-leave\/#more-36858\" class=\"more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":1339,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[5,3120,2298,2266],"tags":[2102,86,62,57],"class_list":["post-36858","post","type-post","status-publish","format-standard","hentry","category-outlook","category-pro-member-exclusive","category-succession","category-partner","tag-buyout","tag-partner","tag-retirement","tag-succession","membership-content","access-restricted"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>can partners compete after they leave? 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