Deleted
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Post by Deleted on Aug 2, 2012 9:46:03 GMT -5
The last time I researched a non-compete agreement was a few years ago. At that time, consensus was that if the agreement was limited to 1-3 years, it would be enforceable.
Yesterday, my colleagues were chatting with the new hire who also interviewed at a private practice in town (we work for the hospital). They wanted her to sign a 25 page non-compete agreement that would last for 7 years after termination of employment. The kicker was that it would be enforced whether she resigned, quit, was laid off, or fired. And she would be unable to work within our profession at all even though not all areas of our profession would be in competition (i.e. working for a school district), or "downgrading" herself to a tech (who also would not be in competition).
Is that even enforceable or are they just betting that no one would take the time and money to fight it?
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Post by BeenThere...DoneThat... on Aug 2, 2012 9:51:26 GMT -5
... ... ... They wanted her to sign a 25 page non-compete agreement that would last for 7 years after termination of employment. The kicker was that it would be enforced whether she resigned, quit, was laid off, or fired. And she would be unable to work within our profession at all even though not all areas of our profession would be in competition (i.e. working for a school district), or "downgrading" herself to a tech (who also would not be in competition). Is that even enforceable or are they just betting that no one would take the time and money to fight it? ...yikes...  ...did she sign it?  |
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Post by Deleted on Aug 2, 2012 10:06:49 GMT -5
No. Her husband also works at the VA. Different department, but our supervisor interacts with him on a certain project. He knew we were working on approval to hire more people. He asked us our opinion about this particular employer. Since it would have been very unprofessional to tell him that his wife needed to run as fast as she can in the opposite direction screaming her head off, we told them to proceed with caution. She took the non-compete to a lawyer who told her to run as fast as she can in the opposite direction (screaming optional ;D)
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Post by BeenThere...DoneThat... on Aug 2, 2012 10:12:34 GMT -5
No. Her husband also works at the VA. Different department, but our supervisor interacts with him on a certain project. He knew we were working on approval to hire more people. He asked us our opinion about this particular employer. Since it would have been very unprofessional to tell him that his wife needed to run as fast as she can in the opposite direction screaming her head off, we told them to proceed with caution. She took the non-compete to a lawyer who told her to run as fast as she can in the opposite direction (screaming optional ;D) ...lol... ...yeah, I'd be hard-pressed to maintain my composure and not flick the papers back across the desk to them and say, "have a nice day"... which, we all know, is the universal "take a hike" slur in the business world today... ...and I'm curious like you in wondering how many people they hire with that? |
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Miss Tequila
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Post by Miss Tequila on Aug 2, 2012 10:18:50 GMT -5
I'm not an attorney and don't play one on the internet...but, from what I remember non-competes that completely restrict your livelihood are not enforceable by the courts. In other words, they have to be reasonable to be enforceable. The problem is, what is reasonable to one person is not reasonable to another.
I don't have a non-compete at my current job but I did at the firm I left. Based on the wording, they could have made it very difficult to get a job anywhere locally...and like the OP, my restrictions were valid whether I resigned, was laid-off or fired. We got together as a group of managers and went to HR because none of us were comfortable signing the document. While they didn't change the document, they did give us some clarification in writing as to when they would enforce the document. Basically, the did not want any of us going to a client and causing the firm to lose the account. In writing, they agreed to not enforce teh contract unless that happened.
legaly, I do not know if their addendum would have held up in court, but given my history with my firm I trusted them to stand behind it. Luckily I found a job with a non-client so it didn't matter.
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bean29
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Post by bean29 on Aug 2, 2012 10:20:38 GMT -5
IDK, however my DH is an insurance agent. His compensation structure is changed to where his commission will go down about $40,000 at least next year and the non compete is changed significatly to where you will probably end up not working in the field at all. They used to pay out the buy out for the agency all at once. Now it is paid out over about 3 years. The non compete used to be 2 years I think it is at least 3 now.
I have told DH twice now that due to the changes in compensation, I seriously think he should sell his agency and go independent. DH replied that there are so many agencies for sale in his region that he thinks that is the option a lot of agents have taken. He mentioned the new pay out schedule as a drawback b/c it gives them more power/control over you.
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Post by Deleted on Aug 2, 2012 10:24:10 GMT -5
I think my response would have been along the line of "what, do you shit gold or something?" Then tossing the papers across the desk and have a nice day.
The lawyer asked her if she was someone famous or really well known in the industry. Her response "No, I just graduated. This would be my first job." After choking on that, he told her to keep looking for another position.
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