Announcement

Collapse
No announcement yet.

Non-Compete Agreements?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Non-Compete Agreements?

    Vikki mentioned in her "Your Bio" thread that she recently signed a "non-compete" agreement at her new job. I'm curious to know if anyone else has done this and what the general thought is on the ethics of it. Personally I hate them and see it as a bully tactic some employers use to keep their employees from exploring other options. I signed one once and vowed never to do it again...and I have my doubts that these things would even hold up in court.

  • #2
    Hello Greg,

    <<...and I have my doubts that these things would even hold up in court.>>

    That's correct(in the state of Texas,anyway). Texas(as being Gods'country) is a "right to work state". Other terms are used as well, "work at will". A non-compete clause does not hold up. Even if you sign one. Being in management, employers use this tool to find where the employees' head is at. Like, is this employee going to steal or turn clients to some business(competitors)away from that employer. You still should check with your states' labor laws on that, though.

    John

    Comment


    • #3
      Good subject Greg. I've heard of non-compete contracts that had a time limit on them, and if a company spent a large sum of money training an individual, it might hold up in some courts of law. But it seems to me that a *reasonable* time limit might be the determining factor, in some states. My personal opinion is that if a company is willing to train an individual to become a tradesman, it should not have to compete against that person for a reasonable length of time. No, I've never used that type of contract.

      Ed

      Comment


      • #4
        Originally posted by Ed_L
        My personal opinion is that if a company is willing to train an individual to become a tradesman, it should not have to compete against that person for a reasonable length of time.
        This is true and I think if a company is going to invest substantial time and money into training (or tuition reimbursment) they should be able to retain that employee for a certain amount of time. But with that said, I have seen some very unreasonable non-competes even when no training takes place and the new employee already knows the job from previous experience. In this case, I think it's just a way to manipulate employees and allows the employer to keep wages down.

        Comment


        • #5
          If it is a case where the employer is using the contract strictly as a tool to crush competition, I think common sense would indicate that it probably would not hold up in court. For a contract to be binding, there has to be something in it for both sides, and I doubt that employment would suffice, although I'm not an attorney.

          Ed

          Comment


          • #6
            Non Compete Clause

            Hi,

            I recently got fired from a sales job, and then went to work for the competition. I did not take any customer lists, nor have I contacted any former clients. There are also no trade secrets in this business. There are a dozen other companies in town that do the same thing we do with the same type of marketing materials. My former boss fired me and so I went to work where I can make a living and do the only thing I know how to do to make a living. My new boss and former boss have been rivals for years and do not like each other. My former boss told me he would not care if I went anywhere else, but he just doesnt want me at this company I am at now. The reason I got fired was because my boss says I stole company leads that were also meant for the other salespeople. I took leads and called them to make sales - I didnt take them anywhere else. And I did this b/c my sales mgr. at the time said I could. Anyway, I have been sued and we cant seem to find that sales mgr. in order to get her subpenoed (?)... My question is, will the judge look at why I was fired in order to deem the Non Compete enforceable or not? If I was justly fired, will the Non Compete most likely hold up or does that matter? Will they just carefully look at the Non Compete and what is says and not go into why I was fired?? Please help!! Ive never been sued and Im freaking out! K

            Comment


            • #7
              Again, I'm not an attorney, but I think you need to consult one for a proper answer. Good luck.

              Ed

              Comment


              • #8
                yea, i actually do have an atty. looking at it, - i was just wondering if anyone out there has ever been in a similar situation or if anybody knew of anyone who won a Non Compete suit.. im in TX and i know it's a state specific thing... thank you!

                Comment


                • #9
                  Mississippi is also an at will employment state. So I suppose that means it would not hold up here in most cases either. Only time I have ever been faced with one of these agreements was when I worked for H&R Block several years ago. Now if you want to say that it was the training that makes it okay you would be wrong in this case. The returns I did were short and it was totally computer based. Put X number in blank X etc. I can see this being an issue for folks that they actually send to training, for doing long forms and such. But that I was required to sign one I thought was pretty ridiculous. But I don't think that I would sign one if I had a job doing photos. Well, not unless there was a decent time limit and there was lots of useful training that they would give me. lol

                  Dawn

                  Comment


                  • #10
                    I took my non-compete contract to a lawyer before signing it. He said that regardless of the state's "right-to-work" status, if you signed the contract it is enforceable. It is indeed a contract. He said though that you could argue in court over the terms. My contract stipulated a 50 mile radius, that he said a judge might see as unreasonable.

                    I just refused to sign it. Never got fired for not signing it.

                    Comment


                    • #11
                      I once worked as an independent contractor (ad specialty sales) and the distributor wanted me to sign a non-compete contract. I refused since I felt that if I was paying my own expenses and generating business for him (on a 50/50 margin) there was "nothing in it for me". He desperately wanted the customers that I could bring him so he backed off. He had a small customer base of his own clients when I went to work for him. I knew who they were and have, to this day, never called on them.

                      I realize that as contractor, I would bear my own expenses, but more and more he started relying on me to provide services to him. I bought a copy machine, he wanted me to make copies of stuff. I bought computer, scanner, software, laser printer, fonts, clipart etc. in order to generate camera ready art for my clients. He started billing for my artwork and taking half the charge as his own! He even started asking me to create art for his clients at the same "rates". The final straw was his listing of a toll free number that I was paying for so that his clients could call and leave messages for him!!!

                      I left him after 5 years and opened my own business. He was livid and tried to tell me I had a no compete clause. I asked him to show it to me, he never could. I gave him one month's notice and took that time to get my business ducks in order. Since my customers were used to calling me on that toll free line, he was SOL. I'd say 95% of them moved with me. From day one I doubled my income and have never looked back.

                      Comment


                      • #12
                        Re: Non-Compete Agreements?

                        Originally posted by G. Couch View Post
                        Vikki mentioned in her "Your Bio" thread that she recently signed a "non-compete" agreement at her new job. I'm curious to know if anyone else has done this and what the general thought is on the ethics of it. Personally I hate them and see it as a bully tactic some employers use to keep their employees from exploring other options. I signed one once and vowed never to do it again...and I have my doubts that these things would even hold up in court.
                        Yes, they do hold up in court. Sales and management jobs are more strict than production because they involve relationships rather than skills.

                        Also, it seems like the more "personal" the termination, the more ugly the break becomes. Former employers can say, "I don't care where you work, as long as it's not for CompanyX." CompanyX, is your new job.

                        I'm in Florida (a right to work state) and I have been to court to testify on behalf of a new company, being sued by an old company. So. it does happen.

                        Like anything else you sign. You'd better be willing to abide by it.

                        Comment

                        Loading...
                        Working...
                        X