While discussing future occupations with another parent(s), it came up how when we looked for work, very few companies had you sign a non-compete agreement. Now it may have become more popular. Is this true for engineers or accountants or nurses? How can a company make it so you cannot earn a living at your trained profession? These seem like such a horrible thing to slide in on your first day on the job and HR has you sign all these different forms. Do these kids even know the extent to what they are signing over?
Has your DS or DD recently graduated and landed a job that required a non-compete agreement? Which industry was it in?
Have any of you had older DS or DD that did sign one and it has caused problems?
How could that be enforceable? You need to be able to pay your bills and have insurance. Our attorney said H’s WAS enforceable as his paid him full salary and covered health insurance. He could go outside of a specified metro area and work or jump to a different industry but they still had to pay him. Why would anyone sign a noncompete that didn’t pay you?
Many job seekers are in a weak negotiation or choice position if they are unemployed or expecting to be unemployed soon (employer about to go out of business, etc.) and do not have sufficient savings to live on while making an extended job search. So they may have to take the first job that they can get.
Yes, my hairdresser said that she had to sign a noncompete contract when she was a hairdresser (trade secrets, etc.) She said a whole bunch of them had to sign and then when they quit, they went to a different salon. Fortunately, it wasn’t nearby and they didn’t actively try to steal all the clients so there was no lawsuit trying to enforce the contract. I was and am surprised and disheartened at how widespread this practice appears to be, especially if they won’t give the employees severance pay to live off of while they are abiding by the contract. Sometimes there’s a geographic limitation as well. The hairdresser said it was a 15 mile radius, which is basically the entire island.
I think when there is geographic restriction on where you can work/practice (ie. physician, hairdresser), the concern is that the former employee would steal patients or clients. These are customers that they have a relationship with as a direct result of their employment with their former employers. In my employer’s situation, the patients came to see these physicians because of the name recognition and reputation of the practice.
I have never seen a non-compete that paid. And I’ve had one at almost every job I’ve had in the past 30 years. As @roethlisburger said, if you need a job, and signing the non-compete is a condition of employment, you do it. Just like you pee in a cup if the employer requires a drug test. There are many folks who are asked to sign non-competes that are not at a level to be able to negotiate something like that.
@roethlisburger and @InigoMontoya Yes, that was a serious question. Over 35 years in the industry H has always negotiated his noncompete and always had a clause that stated he would be paid if they wanted him not to work within a specific geographical area. Many physicians and administrative staff negotiate this. I guess this must be industry specific although I have been asking friends here in MN in other industries and no one else even knows anyone with a noncompete and no one has ever been asked to sign a non-compete. I think @Himom mentioned something about hairdressers having to sign noncompetes. I had my hair cut on Friday and asked stylists there about non-competes. None of them had ever signed one. MN is a state where a noncompete can not impose unnecessary
hardship on employee. I think not being able to get a job is, indeed, a hardship on the employee.
Yes, the hairdresser we spoke with on Thursday said that she and her coworkers had to sign nomcompete contracts to work at a salon with a geographical limitation of 15 miles. Fortunately, it wasn’t enforced when they left and worked for a competitor a few miles away.
So it sounds like the take-a-way is that one just has to sign it or go home. That is what I basically thought. Sure does put the fresh grad in a tough spot.
