What do you know about Non-Competes??

Timeismoney08

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Jul 2012
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Can a company ask you to sign a non-compete agreement after starting a position, without offering any incentive for it?

I had a position where it was never discussed, I quit my job and started the position, but then on day 1 of starting, they asked me to sign a Non-compete. I told them I didn't feel comfortable with it, but then they said anyone who wants a job there has to sign it. Pretty much if I didn't sign, I would have been without a job instantly.

Well the job turned out to be ****, they lied about a few things and didn't offer everything they put on the offer letter, so I left.

Now I'm wondering how much their non-compete matters.


Thanks!
 
Pretty standard in the UK, don't think I've ever had it mentioned in an interview that I would require one. I think its something that's just assumed that will happen in this line of work.

As for legality of the contract, I wouldn't know about the US employment law side of things.
 
I’m not a lawyer. I just play one on tv. :)
Really though, if this affects your livelihood....
I don’t see how it’s binding.

In other words if a system integrator had you sign it... I don’t see how they can hold you to not working for other SI’s
If it’s a carbon fiber manufacturer then going to work at that specific industry competitor might be different

What’s the industry?
 
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They are common in my area. They basically say you cannot work for any of the integrator's customers. The thought is you have inside knowledge of what the integrator charges, and you could easily undercut the prices. Most of the ones around here cover a certain area, and time period.

The ones I have signed, say something along the lines of they will issue a stop and desist, instead of wanting money. Most customers will not hire you, if they know of the non-compete, they don't want any potential legal hassles.
 
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The industry is just custom automation, so it's pretty broad.

I guess another way to look at it, is what if a company offers someone $300k per year to get them to stop their company, offers many benefits, gets them to start the position, says they have to sign the offer letter, and then doesn't even have the benefits they said they did.

In that case, it seems easy to get rid of competition just by doing that and then firing them.
 
They are common in my area. They basically say you cannot work for any of the integrator's customers. The thought is you have inside knowledge of what the integrator charges, and you could easily undercut the prices. Most of the ones around here cover a certain area, and time period.

What if I leave, they get new customers, and then I compete with the new customers because they are coming to me also? Obviously they have no clue that I used to work there.

Am I only held to the customers they had while I was there? Or also future customers. Also, how would I know who was their customers. I only dealt with a percentage of them while I was there.



Thanks!
 
Depends on how it was written and how much it impacts your ability to find work. Depends on how much time and effort you are willing to fight it should you need too. Consult a lawyer if you're concerned about it, or you new company's HR/legal team.



One integrator I worked for, the non-compete basically said I couldn't do controls work in North America for a year, so that was a complete joke, just scare tactic to keep you. Company I went to work for laughed at it when I brought it to their attention.



Others I have signed have been more realistic, basically "stay away from our clients" which I feel is reasonable. It gives them a warm fuzzy and still provides you an ability to keep yourself employed elsewhere.
 
I can’t wait to hear other responses,
But I wouldn’t worry about. Did they officially buy your other company?
 
A company is within its rights to make signing a non-compete agreement a condition of employment. Many non-compete agreements are unenforceable because they are too broad.

A non-compete can prevent you from starting a business in direct competition with the employer, but there must be a reasonable time limit and geographic area. It can keep you from using customer lists and proprietary technology obtained from the company, but it can't keep you from using publicly known info. (For example, everybody knows GM uses PLCs.)

It can't keep you from earning a living with your expertise. If you are a programmer, you can get a job with another integrator as long as you don't reveal the other guy's trade secrets (assuming he had any!).

Abusive and unenforceable non-compte agreements are common. There is a law firm in my city that advertises its main business is to help you "beat your non-compete"! I did a search on "limitations of non-compete agreements" and got a great deal of info. I suggest you do that. (Most of us on this forum don't even play an attorney on TV.)
 
What state are you in? I had the exact thing happen to me. I quit one job, started another and then was "offered" a no-compete contract valid for two years after departure of the company. I had to sign it or I would have no job. I was not given compensation above and beyond my pay to sign it, so since there was no "quid pro quo". I was told it would be unenforceable. After I left, I continued to support my customers until I found another job at a place that was definitely not a competitor, so I never got called out for it. Best of luck. The bad thing is that if a potential employer hears you have signed a no-compete contract, then they may get scared away.

By the way, I am not a lawyer, never played one on TV, but I have stayed at a lot of Holiday Inn Expresses!
 
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Pretty standard in the UK, don't think I've ever had it mentioned in an interview that I would require one. I think its something that's just assumed that will happen in this line of work.

As for legality of the contract, I wouldn't know about the US employment law side of things.

My understanding in the UK is that unless they pay you, they can't limit where you work.

As an example, investment banks or hedge funds will pay and enforce people leaving them to sit at home without working for 6 months being paid their normal salary at the time they resigned.

As usual, employers (particularly small ones) think they can have all the rights with no duties attached to them.
 
What state are you in? I had the exact thing happen to me. I quit one job, started another and then was "offered" a no-compete contract valid for two years after departure of the company. I had to sign it or I would have no job. I was not given compensation above and beyond my pay to sign it, so since there was no "quid pro quo". I was told it would be unenforceable. After I left, I continued to support my customers until I found another job at a place that was definitely not a competitor, so I never got called out for it. Best of luck. The bad thing is that if a potential employer hears you have signed a no-compete contract, then they may get scared away.

I'm in Georgia
 
A company is within its rights to make signing a non-compete agreement a condition of employment. Many non-compete agreements are unenforceable because they are too broad.

A non-compete can prevent you from starting a business in direct competition with the employer, but there must be a reasonable time limit and geographic area. It can keep you from using customer lists and proprietary technology obtained from the company, but it can't keep you from using publicly known info. (For example, everybody knows GM uses PLCs.)

It can't keep you from earning a living with your expertise. If you are a programmer, you can get a job with another integrator as long as you don't reveal the other guy's trade secrets (assuming he had any!).

Abusive and unenforceable non-compte agreements are common. There is a law firm in my city that advertises its main business is to help you "beat your non-compete"! I did a search on "limitations of non-compete agreements" and got a great deal of info. I suggest you do that. (Most of us on this forum don't even play an attorney on TV.)

I completely understand, but it seems wrong to only bring up the contract after employment is started and no prior discussion of such a contract.
 
I completely understand, but it seems wrong to only bring up the contract after employment is started and no prior discussion of such a contract.

Lesson learned, next time ask this during interview.

Laws have changed and differ from place to place too, but you should ask as well about who owns what you create in your own time. Some companies have internal policies that claim to own anything you do... they may not be able to prove it in court, but if you get to court, you already lost.
 

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