WOT: Non-Compete Agreement, what to do?, I'm inclined not to sign it Options

[JPB]

The business I used to be in, they put that paperwork in front of us to sign. I think I usually signed them "Jim Shorts".....no one ever noticed.

(IMG:style_emoticons/default/av-943.gif) Awsome!!

Everyone in this country who ever got SCREWED was so by signing something. Wanna get SCREWED? (IMG:style_emoticons/default/sheeplove.gif)


(IMG:style_emoticons/default/beer.gif) I'd stay and do my thing and look for a job somewhere else and stick the paper up their butts fist handed when you leave. Your carrier is yours where ever you go and this will ensure you will only be allowed a window job at McDonalds!! (IMG:style_emoticons/default/finger.gif)

[byndbad914]

I just went through the same thing. I talked to a lawyer who handles these things and she told me not to stress about it. Most of the agreements are not even close to defendable. Like you have already pointed out, courts don't like vague wording.

without reading all the posts - just wanted to (IMG:style_emoticons/default/agree.gif) with this one and give my same example - I hired on at my current job 6yrs ago and they required I sign a non-compete that was rather wordy and "all-encompassing". I had a law class at the time and asked the teacher (20yr lawyer still working - so not just "theory") and he said sign it. Too vague and, frankly, all a non-compete means is you can't really take any SPECIALIZED or proprietary stuff into your next job. Doesn't mean you can't use all of the skills you learned as that is frankly how you make a living. They don't hold up well.

I was concerned as one of the blurbs mentioned I can't design and sell automotive related items because the company was previously owned by GM. That is where I was baulking, but the lawyer said if I designed and patented aftermarket performance stuff on my own time with my own tools they wouldn't have a case at all. Use their tools (CAD at work for instance), they have right to it.

Non-competition seems really kinda specific, so vague language gets hammered by the courts AND THEY KNOW THIS TOO, so it is more or less a scare tactic to keep you from doing said things.

You have the added benefit of DURESS - sign or you don't have a job. NO CONTRACT IS LEGAL IF SIGNED UNDER DURESS and that would be VERY easy to show in your case and wouldn't cost hundreds of thousands of dollars. A lawyer could make a simple statement to the court and they may throw it out immediately anyway.

All that said, probably best to look for another job as you implied in your first couple of posts. If just sold to venture guys, that job is going to be shaky and up for resale before too long anyway and you have more BS to deal with.

Best of luck. Oh yeah, and don't sign anything unless they offer you a job and you want to take it. I wouldn't sign the termination agreement either without the new guys offering a job in writing. If there is a chance they could screw you, then screw them!

[Matt Meyer]

Don't sign unless it is part of your job offer, and only then if the conditions are acceptable realizing it will be very difficult to enforce at best.

This is probably a knee jerk reaction with too little thought. I would think about talking with others at your company, if alot of people think it is unacceptable as written then they might rewrite it. But most people are sheep and won't care.

If it is too broad you can mark it up to your liking, initialing & dating changes and sign. Probably not a good idea though because this shows you understand the document and that it was too broad.

[effutuo101]

(IMG:style_emoticons/default/agree.gif) if it is part of a job offer, then that is one thing. If they want to tack it on, then there are financial considerations (aka show me the money).
Chris

[Rider914]

Have someone sign your signature close, but not exact . . .

Turn it in without anyone seeing you,
and don't quit and run to your competitor with the client list and prices.

I am under a no compete - The only examples I know of is when a competitor hires someone and if they are high profile enough, they pay them while they wait out the contract. . . Sweet.

Most of the time it isn't enforced here.

[wbergtho]

It,s to far reaching and you signed under threat of termantion. And can prove it! This is only good if you want to go to court ever. Start looking elseware. It appears they have very little regard for your contribution to the growth of the bussness. My 2 cents. Dave

If you really like this job and your new ownership wants to retain you...carefully study the documents and revise them to your liking...in effect, you are turning the tables on them and defining your contract/agreement with them. If you are crafty enough, you may be able to engineer new terms that are actually better than the previous employment you had before. This is wishful thinking of course, but if you are a productive asset to this company...they may listen...and this may afford you the opportunity to define your compensation package to your liking. Too often, companies try to get something for nothing and intimidate their employees. If this is the case, maybe it's time to start searching. Good luck.

[grantsfo]

Typically companies provide some sort of monetary reward for signing non compete. My last employer gave me stock and a big separation package equal to about a years salary to get me to sign a non-compete agreement. It was also only 24 months long.

If they arent giving you anything why sign? (IMG:style_emoticons/default/whack_3.gif) I'd tell them to go pound sand.

[914rrr]

Well, it finally happened. I told him to (IMG:style_emoticons/default/KMA.gif) !!!!

At first I refused to sign the non-compete. This allowed me to drag it out a few weeks. I tried to negotiate the non-compete with the owner 2 times. The terms of the non-compete were outrageous,....like ANY activity at the job, no geographic boundry, no severance, etc. AND... he asked me to sign an employment agreement with absolutely no policies and procedures in place. (IMG:style_emoticons/default/blink.gif) (IMG:style_emoticons/default/av-943.gif)

Problem with signing a non-compete in TN (even an unreasonable one) is that employers usually win. Best I could hope for is to get the terms changed so they are more reasonable after spending $$$$$ in court.

Next comes things like changing my job title. Basicly a demotion, likely with a corresponding drop in pay.

Soooo... he's convinced I'm going to cave and sign, like all the other sheep in the office did. I tell him I'm resigning! (IMG:style_emoticons/default/finger.gif) I was their entire sales staff / only salesman. No biggie, as I'm not so sure the company will survive anyway, especially with the new owner at the wheel.

Thanks to all for the advice!

One thing to remember, if you sign a non-compete the employer has already won. They usually have waaaaaaay more money for litigation than you do. It also makes it harder to get hired at a new job with a non-compete hanging over your head.

A guy I recently bought a car from told me that his ex-employer (a major telcom) sued him for non-compete after leaving his job as a 'pre-emptive' measure. HE HAD DONE ABSOLUTELY NOTHING to violate the non-compete, they simply did it "because they could"!!!!!! Even though he did nothing wrong, he lost (in Federal court, because they heavily favor employers), and it cost him about $30k to defend himself.

[terrymason]

Way to stick to your guns! I'm sure you'll find something else pretty quick.

[alpha434]

Iyeee!!!

I just started at a new company. Their non-compete agreement is really aggressive. It states that I cannot work for any company in competition with them and then lists in parenthesis named examples. What should I do? I'm only 20 and I'm sorta small fish. But I'm a trained machinist. This is a prototyping shop and I'm afraid that signing an agreement will stop me from working at any other prototyping shop. The easiest way to make more money in this field is to change companies. And getting into these high-end prototype shops is the next step to getting a much higher pay range.

Sign it "Elvis Presley" ?

I sign my C in "Chris Logan" Like an E.

[terrymason]

Iyeee!!!

I just started at a new company. Their non-compete agreement is really aggressive. It states that I cannot work for any company in competition with them and then lists in parenthesis named examples. What should I do? I'm only 20 and I'm sorta small fish. But I'm a trained machinist. This is a prototyping shop and I'm afraid that signing an agreement will stop me from working at any other prototyping shop. The easiest way to make more money in this field is to change companies. And getting into these high-end prototype shops is the next step to getting a much higher pay range.

Sign it "Elvis Presley" ?

I sign my C in "Chris Logan" Like an E.

How long does it stay in effect?

Saying you can leave for a direct competitor doesn't sound too crazy to me.

[whatabout1]

I agree with most of what is stated above.

But legal defence is expensive and I would rather put $10K somewhere else.
(my teener wants a bigger six)
{edit} So get legal advise before signing.

My attorney told me to delay as long as possible, but if you are forced to sign
write in big block letters "SIGNED UNDER DURESS" by your sig.

Really watch for the INTELLECTUAL PROPERTY AGREEMENT. I have been asked
to sign docs saying that anything I have thought of or built at the time of my
employment is property of the company and further, anything that I come
up with any time in the future is theirs if it relates to that business.

That would mean my 914 could be thiers as I worked on it nights and weekends
while employed by the company. Gush even that new 914-6 muffler bearing
that I was going to sell on EBay is theirs !!!

bob (darn, I was hoping to become the muffler bearing baron)

[ptravnic]

Legal advice is worth what you pay for it... Do yourself a favor and hire an atty who specializes in employment law. Prob cost you about $500, which should be tax deductable...

-pt