Has anyone had to sign any sort of a "No Compete" contract? The company I worked for decided to force us to sign one with no prior advance. I had worked there for 4 years without one. Suddenly, we were told one Monday morning that if we didn't sign, we would be fired. My wife is a paralegal and has access to 6 very good, very nice and honest attorneys (they do zoning, they aren't trial lawyers). They were correct in telling her that in Indiana, the contracts have no legal base, and that companies use them to intimidate employees. So I signed, knowing it would never stand up in court, at least in my state. Very long story short, due to family and worship relationships that I will never discuss, I had to pay my former employees $12k to keep the peace. Right out of the gate I was $12k in the hole. I harbor an amount of resentment that bothers me from time to time, and it makes it hard to pretend that I don't have those feelings for certain individuals. Anyway, I say "No Compete" agreements are crap. There is enough work to go around for everybody. I could understand one in a field like pharmaceuticals, chemistry, aeronautics etc, but CARPET CLEANING?! What a joke. What do y'all think?
What do y'all think? I think: 1. In most states you can draft a legally enforceable non-compete contract with the help of an attorney. It must be reasonable re; work area and time limits and must show that you as the employer would suffer serious damage if your employee were to go into business against you. As always, legal advice is essential. 2. The very best "non-compete" is to achieve two things with your company. A) So totally dominate your local market area that any employee would be insane to compete toe to toe with you and B) create such a great work environment they won't want to. Sincerely submitted, Steve Toburen Director of Training Jon-Don's Strategies for Success PS RE: Point #2-A above I know whereof I speak. Over the years, just like everyone else I encountered employee turnover. HOWEVER, not one employee ever went into business against us because they knew it would have been a tough battle all the way. Several moved far away (as across the country) and started up their own carpet cleaning business with my blessing and support. If you want to see a company that lives by both Point 2 A and B above just look at Jon-Don. They both dominate their market AND have created an extremely appealing and comfortable work environment for their workers. I personally have been a (very part time) employee for going on 13 years and have no plans to go elsewhere. (Even though I could be tempted if Big Billy and I have to wear those bowling shirts again next year at Connections!)
It all depends how much money you or the other guy have to spend the guy with the most money to spend will win Neil
As Steve T says, a non-compete can be constructed with limitations that make it valid in almost any state. (Sometimes he gets things right.) But many that are written by small business people, like carpet cleaners, are even attorneys not specializing in business law, are poorly written. I was asked to sign on to keep my job. I beleive it was poorly worded and would not hold up in court. (But I am not a lawyer specializing in business law.) I did not matter to me if the agreement was legally valid. I knew what it said when I signed it. I was giving my word to abide by the terms of the agreement. I will honor my word. You did what was necessary to settle things with your former employer. So you were keeping your word to abide by the agreement you signed. Keeping our word should be done for the right reason, not because a lawyer can't figure a way out. If you focus on the reason you kept your word, I think you can leave the resentment behind. Scott Warrington
"I was asked to sign on to keep my job." Really, Scott? And here I was all ready to make you a job offer! Steve PS Just kidding on the job offer, buddy. In today's economic system of things I would just bloom where you are planted! That is what I plan to do and I've never signed no stinking contract! (However, like you, Scott, I would never work against a previous employer that had treated me honorably plus of course Nick Paolella has a cousin named Guido who would also keep me in line!)
Indiana is not one of these states. In fact, my original question was not about the legality of the contract, which was never in question: I would have won my case in an Indiana court. I chose not to pursue a secular suit because of insurmountable problems that would have been caused in my personal life. I would have signed the agreement the day I walked in the door in August of '98, if they had only asked. But to force us to sign such an agreement years later--at the threat of losing my job as a newly married young man--ruffles my feathers. Steve, I understand your viewpoint as a corporation employee who will defend the hand that feeds at any cost. I'm not surprised at your response. However, it hurts me to know that I tried to take the high road and got stuck with a $12k bill--a bill that in a legal sense I never owed. It's not like I stole secrets for a better mouse trap. We're talking about spraying hot water on the floor and sucking it back up. PS--I NEVER took any of my former company's work.
WHOA! I think what we have here is a failure to communicate! Anyone who knows me will tell you that I am no "corporate stooge". I do feel your pain, especially when it involves family. (Been there- done that!) By me ragging on Scotty W. I was not trying to make light of your problem. My apologies. Steve PS True, my points re: non-compete clauses were written from the standpoint of small business owners, which the vast majority of readers of this forum are. However, as all of us should always "do the right thing".
Hey, Steve, I didn't take offense at anything you wrote, and I certainly didn't mean any. Often it's hard to translate feelings via a typed message, so I hope I didn't come across like I think you're a stooge or something. I actually know a lot about you (how creepy is that?) from reading ICS over the years, so I know your history and have a great deal of respect.
