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Need help on a legal question

SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
edited May 2004 in General Discussion
Have you ever had to sign a Non-Compete Agreement for your employer.. I was given one today.. I'm so undecided what to do.... I understand these are pretty standard and agree with most of it... This is the part that gets me...

Para. B
Enter into the employ or personally engage in, or otherwise directly or indirectly render service to any person, firm, association, or corporation who at any time within one year prior to the termination of this agreement was a customer of (said company) or an affliated company of the customer.


What do you think?



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Comments

  • select-fireselect-fire Member Posts: 69,482 ✭✭✭✭
    edited November -1
    This simply means that you will not do business with any company that your company is working for now. Pretty standard. That will be $100.00 Hee..HEE..
  • dcon12dcon12 Member Posts: 31,563 ✭✭✭✭
    edited November -1
    And very enforeable. Don.

    "Right is Right, even is everyone is against it, and wrong is wrong, even if everyone is for it"
  • haroldchrismeyerharoldchrismeyer Member Posts: 2,213 ✭✭✭✭✭
    edited November -1
    The purpose of this agreement is to be sure that you won't make the companies that they make money off of an offer to do it cheaper and take away their business. If you just want to do your job, and don't have plans to take away their business, then sign the agreement.
  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    Select-Fire it also means I couldn't go and work for one of my customers for one year if I left there someday.

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  • dcon12dcon12 Member Posts: 31,563 ✭✭✭✭
    edited November -1
    It changes your line of work should you decide to quit or if they decide you no longer work for them. Don

    "Right is Right, even is everyone is against it, and wrong is wrong, even if everyone is for it"
  • boogerbooger Member Posts: 1,416 ✭✭✭
    edited November -1
    I have never had to sign one, however, I bought a business and one of the conditions of sale was that the seller sign one. (So as not to open another identical business and compete with me)

    What my lawyer told me was that the courts do not like non compete agreements with no monetary value attached to them. Essentially it has to have a value assigned to it, in order for it to be valid. So in the sale we assigned it a $5,000 "value".

    How this applies to the employer/employee agreement I do not know. Frankly, they can't be enforced unless the employer can show damages?



    Them ducks is wary.
  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    That's Para. C
    In a nut shell

    If employee violates the terms of the agreement he/she will pay all of the companies lawyer fees and sum of $100,000.00 for damages..

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  • dcon12dcon12 Member Posts: 31,563 ✭✭✭✭
    edited November -1
    I have to wonder, you did not just start working there so why the need to sign one now? Don[?]

    "Right is Right, even is everyone is against it, and wrong is wrong, even if everyone is for it"
  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    Changes within the company.. We have grow so much in the last 4 years that I have worked there... Company was doing about 1 million when I started there,,, Now it's alittle over 5 million year..

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  • dcon12dcon12 Member Posts: 31,563 ✭✭✭✭
    edited November -1
    Headhunters cause a lot of this type of thing within companies. Also with the growth, you have a lot of splitting within when emplyees go out on thier on to form similar companies. If you are there for the long term, no problem on your part but keep in mind they are the boss. Don

    "Right is Right, even is everyone is against it, and wrong is wrong, even if everyone is for it"
  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    Don,

    Guess I'll do alot of soul searching and thinking this weekend.. The form must be signed on Monday..Think I'll have a glass of wine and think for now..

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  • dcon12dcon12 Member Posts: 31,563 ✭✭✭✭
    edited November -1
    Good luck, Don.

    "Right is Right, even is everyone is against it, and wrong is wrong, even if everyone is for it"
  • groundhog devastationgroundhog devastation Member Posts: 4,495
    edited November -1
    Karen, They are all pretty much B.......!!!! No way in h... should you sign something that says you may have to pay them 100,000 if you get a chance to better your position in life!!! And they will have a hard time winning against you if they "restrict your pursuit of a livelyhood in your chosen field!!!" You can always go to work doing what you do for "Town Gun"!!![:D][:D][:D][:D] Couldn't help it!!! Haven't been in there since I told you I wouldn't!!!! Charlie (GHD)
  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    Charlie at this point I feel the same way... Just don't want to make a choice I'll be sorry later for..Trying my best to keep a clear head about it...As for Town Police.. I think NOT!!!

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  • Henry0ReillyHenry0Reilly Member Posts: 10,829 ✭✭✭
    edited November -1
    I would strongly urge you to consider the consequences of not signing. Will they terminate you? A lot depends on how badly you need the job. If you can find other work without too much trouble, I would call their bluff and not sign.

    my two cents

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  • RosieRosie Member Posts: 14,525 ✭✭✭
    edited November -1
    Usually this is done if you are in a position that your current knowledge of the company you work for would hurt them if you went to work for a competitor. I is usually reserved for the people at the top of the food chain so to speak.
    NOW DON'T GET MY HOPES UP LIKE THAT AGAIN! I THOUGHT YOU WERE GOING TO SAY BYE BYE TO PUNCHIE, TAKE ALL HIS MONEY AND RUN AWAY WITH ME! [:)]
  • n/an/a Member Posts: 168,427
    edited November -1
    I used to have employees sign a no competition clause, that way when they were trained and learned the job that they were doing to the satisfaction of my customers they couldnt quit and go into competition, also my customers signed they would not accept any offers from my ex employees, standard protection.

    It doesnt mean that you cant go to work for another company that does business with the company your with now.. Only if you were to try to steal business away from them..


    "It is hard to soar with Eagles when your surrounded by Turkeys"

    "I dont care how thin you make a pancake, it still has two sides"

    "A wise man is a man that realizes just how little he knows.
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  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    Yes Henry, by not signing would mean my walking papers.. I love what I do, but as GHD said.. If I can better myself I should be able to do that without having to pay a company monies.. I'm damn good at my job they know it and I know it.. Am I patting myself on the back,, Yes!!!I believe in myself.....There are depts that call and ask for only me.. They refuse to work with another employee there.. I have several that will walk into the store, walk back to my desk.. If I'm not there they leave without saying a word to anyone.. I have some that call before coming into the store to make sure I'm going to be there..I work for a company that has a HIGH turn over rate..I have been there for 4 years now.. This isn't the norm.. Everyone that started when I did are gone.. I have seen many faces come and go over the last 4 years.. Not by their choice I might add..

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  • bigsexygbigsexyg Member Posts: 72 ✭✭
    edited November -1
    TextText

    DOES THIS MATTER IF YOU LIVE IN A RIGHT TO WORK STATE?
  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    No worries Rosie.. We would only be going to McDonalds to split an order of fries with Punchie's money.. Actually I wish it would be that simple... This really has my head spinning..

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  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    Bigsexg, I live in a right to work state.. They can fire you if they don't like the color of your hair here..

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  • dcon12dcon12 Member Posts: 31,563 ✭✭✭✭
    edited November -1
    Originally posted by Swwbo
    Yes Henry, by not signing would mean my walking papers.. I love what I do, but as GHD said.. If I can better myself I should be able to do that without having to pay a company monies.. I'm damn good at my job they know it and I know it.. Am I patting myself on the back,, Yes!!!I believe in myself.....There are depts that call and ask for only me.. They refuse to work with another employee there.. I have several that will walk into the store, walk back to my desk.. If I'm not there they leave without saying a word to anyone.. I have some that call before coming into the store to make sure I'm going to be there..I work for a company that has a HIGH turn over rate..I have been there for 4 years now.. This isn't the norm.. Everyone that started when I did are gone.. I have seen many faces come and go over the last 4 years.. Not by their choice I might add..

    That was what I was getting at earlier, maybe they are worried about you sklls and have even been heard rumors from headhunters so are trying to protect themselves. Don

    "Right is Right, even is everyone is against it, and wrong is wrong, even if everyone is for it"
  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    Thanks for the response everyone...

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  • groundhog devastationgroundhog devastation Member Posts: 4,495
    edited November -1
    Karen, If it wasn't such a pain in the butt drive around Richmond, maybe you could go over to GREENTOP and keep that bunch straight!!! Just a thought! Charlie (GHD)
  • plains scoutplains scout Member Posts: 4,563
    edited November -1
    Enforceability varies from state to state. They generally must be reasonable and clear as to time, area, and type of work. One year is reasonable. IMHO the penalty clause is bogus and made to scare tne snot out of you. That penalty clause would not be enforceable in my state. Might want to spend the $50 and have a local lawyer give you the low down if it means staying or being told to leave.




    "A strong body makes the mind strong. As to the species of exercises, I
    advise the gun. While this gives moderate exercise to the body, it gives
    boldness, enterprise, and independence to the mind. Games played with the
    ball and others of that nature, are too violent for the body and stamp no
    character on the mind. Let your gun therefore be the constant companion of
    your walks." Thomas Jefferson
  • MercuryMercury Member Posts: 7,730 ✭✭✭
    edited November -1
    Screw them! I'd NEVER work for a company that treated me like, nor would I EVER require one of my employees to sign something like that!

    Ridiculous!

    IF they think you are such a "threat" if you left the company, then you shouldn't even be working for them!

    I'd tell them to kiss my hiney, and not sign it.


    Probably why I'm self-employed, with my own businesses. [^]


    Merc

    Insignia?

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    "Tolerating things you may not necessarily like is part of being free" - Larry Flynt
  • ClairClair Member Posts: 679 ✭✭✭✭
    edited November -1
    Karen:
    Since this is obviously a major decission for you, I would recomend talking to a lawer.

    To each his own
  • BOBBYWINSBOBBYWINS Member Posts: 7,810
    edited November -1
    I'd sign it on one condition.


















    That they give you the $100,000 up front to hold on to.[:D]



    BW

    IT'S WHAT PEOPLE KNOW ABOUT THEMSELVES THAT MAKES THEM AFRAID.
  • Tailgunner1954Tailgunner1954 Member Posts: 7,815
    edited November -1
    Here the company has to provide reasonable compensation to YOU (during your employment) inorder for the "non-compete" clause to be effective IE: if your wage/benifet package is at or below norm for the industry, it's NOT enforcable.
    I've worked (and still do work) for a few companys that did primarly R&D and hi-tech work, and non-compete non-discloser contracts are the norm there.
    I've also worked for a guy that stole the entire customer data base from his previous employer (his own fathers company no less) and activly targeted his dad's customers. Guess why some companies like them.

    Whittemore
    Some guys like a mag full of lead, I still prefer one round to the head.
  • 2gun2gun Member Posts: 318 ✭✭✭
    edited November -1
    can you ask for an appropriate increase in wages? also check and se what the going rate is in the marketplace for your skills. if customers only ask for you they would likely go with you if you took yourself to a competitor that agreed with you.

    i worked for a fellow for a while that felt it was his right to pay me whenever he got around to it and since i was getting paid on commission his argument was that he hadent gotten paid yet so i wasnt entitled to it. after i found a better job in the same field(yeah i left money behind)he suddenly came around but i was no longer nterested in being broke and begging to get paid.
  • RugerNinerRugerNiner Member Posts: 12,636 ✭✭✭
    edited November -1
    I signed one last week and smiled as I was signing it.

    I'm incorporated, MAGNUM Drywall Services, Inc., and my checks are made out as such.

    I will not take any jobs away from this one company I do work for, but my company might! [:D] [:D] [:D] [8D]

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  • SwwboSwwbo Member Posts: 1,255 ✭✭✭✭✭
    edited November -1
    Thanks all..Will let you all know how it comes out tomorrow.. I work with too many companies out there...I sell to the Federal Goverment. Local City Office's... County Goverment Office's.. State Office's..Power Company, Mall's, Car Dealership's I could go on but I won't.. I would be closing too many doors to sign the contract as is...

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