Thoughts on non compete clauses? Anyone have one?

[Anonymous]

There was an article in NY Times about them today. Do any of you have one? What are the terms? They seem awful.

[Anonymous]

I love non competes. They are HUGE levers for massive pay. Don't want me to work for a direct competitor for a year? No problem, I want 3x annual salary as a sign on to compensate for the risk. Boom, huge payday.

And then when you leave it's simple: they hire you into a role outside your non compete to lock you in, then once your non compete expires you move into the right role. It's done all the time.

[Anonymous]

Agree with pp. countered for a much larger stock gifting upfront. Idea was that stock should cover the 2year non compete - that stock was trading in the low 3's and is now at 960. Use them to your advantage.

[Anonymous]

My company puts them on low-level people with none of the leverage that pp's describe. I think it's pretty crappy to make run-of-the-mill employees sign them. Fine at the VP level and above where people are involved in long-term strategy and decision-making.

[Anonymous]

Anonymous wrote:My company puts them on low-level people with none of the leverage that pp's describe. I think it's pretty crappy to make run-of-the-mill employees sign them. Fine at the VP level and above where people are involved in long-term strategy and decision-making.

Many aren't enforceable. See, for example, Home Paramount case in Virginia.

[Anonymous]

I had one - came with a huge bonus to sign. And then I went to work in California where they are unenforceable. So yeah wasn't a huge deal.

[Anonymous]

Ex company had one in their contract but I never signed it and they never noticed. Everyone has to make a living. Only arsehole companies put these in their contracts.

[Anonymous]

How do you ask about them upfront...before your first day? As a mid level employee.

[Anonymous]

Anonymous wrote:How do you ask about them upfront...before your first day? As a mid level employee.

You can ask about them upfront, but no one asks for them. Why would you do that? They really should be limited to upper level employees or those who are aware of the company's IP or trade secrets.

[Anonymous]

They are great. In finance, You get paid until your non compete expires.

[Anonymous]

My employer had me sign one when I started; I can't work in solar anywhere for three years.

I only make about $70k as an engineer and consider it a worthless piece of paper. I am openly looking for the same position at competing companies.

[Anonymous]

Except in some cases like law, I think they are pretty much garbage. And even in law, I think they should be restricted only to prevent people from stealing clients away from their previous employer.

It's just another way to hold a thumb down on employees who will be cast aside like garbage whenever it's convenient to their employer. Luckily, they are often unenforceable.

[Anonymous]

DH had one back at the beginning of his career out of college. He assumed they wouldn't go after him since he was entry level. He was wrong. His new company provided representation but they lost the arbitration and had to pay a penalty. This was in VA about 15 years ago.

[Anonymous]

Anonymous wrote:Except in some cases like law, I think they are pretty much garbage. And even in law, I think they should be restricted only to prevent people from stealing clients away from their previous employer.

It's just another way to hold a thumb down on employees who will be cast aside like garbage whenever it's convenient to their employer. Luckily, they are often unenforceable.

They are actually virtually unenforceable in the law under the theory that it would restrict a client's right to retain the lawyer of his choosing. Otherwise, it varies tremendously by jurisdiction. I would say they have come under greater scrutiny recently, but in most places there is still a decent chance of getting a reasonable agreement enforced. Also, sometimes the new employer is not willing to take the risk/fight for the prospective hire and a noncompete, even if likely unenforceable, may inhibit a job change.

[Anonymous]

Anonymous wrote:My employer had me sign one when I started; I can't work in solar anywhere for three years.

I only make about $70k as an engineer and consider it a worthless piece of paper. I am openly looking for the same position at competing companies.

More than likely yours is not enforceable. It is too broad and unreasonable.