Does anyone know if a non compete covenant can be initiated between an employer and it’s client without the knowledge of there employees. I am involved in this situation at the present time. I was laid off in December of 2009 and seeked employment with one of my past employers clients. They are not a competitor. I attained employment with the client but was told that after reviewing their service contract that they could not hire me for 12 months. If they were to hire me, they would forfeit $4000.00. Something doesn’t sound right!