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Non-Competes Might Mean Loss Of Benefits
Skapare writes "WashTech is running a story about how having a non-compete agreement could cause loss of unemployment benefits. While non-compete agreements are addressed in unemployment benefits policies, it seems you still get shafted because it forces you to accept any employment outside your field, making it much harder to find work in your field. Personally, I think the employers with whom you have a non-compete agreement should be the ones paying you unemployment benefits."
In California this is a right-to-work state so those non-compete's don't have any effect because you have to work to make a living and the only way to work is to practice your trade.
In the end, if it came down to it, and non-competes were enforced on everyone then only beginners who have never been in the field would be able to get a job.
I don't believe in breaking contracts but I do consult with a legal representative before signing my agreements (yeah, the $5k retainers suck)... in the end, non-completes and contracts that aren't nagotiable aren't legally binding. Anything I invent in my own time isn't theirs, either.
Of course, it's been attempting to claim something of mine I wrote they argued that because they were paying me a salary I was on their time. A few facts first... in California, unless you make about $100k you are not exempt from being paid overtime (you are not "salaried" so that argument didn't hold up well because I wasn't pre-approved for overtime when working at home or they refuse to pay me for all the hours I worked at home because for purposes of overtime pay, they don't recognize "what [I] do in [my] own spare time".
Next, it didn't hold up because I spent quite a sum of money on dev tools and support incidents at $245 a pop with MS and while they company was quick to point out that I was working on their time ("in the garage at my home") when asked if they would expense those expenses because it was "their time" they said what I do with my own money in my own time is not their responsibility.
Next when they were asked why they hired me they responded that they hired me because I have well established experience doing exactly what I do, and what I did for them. I didn't learn it on the job and I didn't pick up any secrets while working there. Further more, what I did in my own spare time didn't even relate to the company or any of my responsibilities at the company or any of anyone elses responsibilities at the company, they just wanted to tell me I couldn't publish an article in a magazine because of "that clause in the agreement". The judge dissagreed.
Next, they would not allow me to negatiate any of the terms of the "confidentiality agreement" concerning the matters listed above therefore the judge didn't think we entered into a legally binding agreement.
When they tried to argue that I "might" be divulging trade secrets by proposing the manuscript to the publisher (that contained working source-code of something fairly unique) they were asked to provide a copy that I signed that specifically told me what trade secrets and since I had never been told specifally what trade secrets (only that I may encounter trade secrets) the judge didn't think there was any stadning because how could I have known what trade secrets? in the end, there weren't any.
The list goes on. In the end, I've established legally with the company that I can do whatever I want in my own spare time as long as it isn't substantially similar to their interests but is also common in the trade if it is close to their interests (for example, all businesses need a contact manager, inventory, services, shipping & receiving system of one type or another but not all businesses are niche (where niche is substantially close to the companies interests)). I can work anywhere I want (even a direct competitor) when I leave -- in California and if I have come in contact with trade secrets, they have to notify my in writing of which so I can know)...
I'm still employed and doing fine at the company. I plan soon to start asserting my right to publish articles on advanced topics in my field of trade (I'm a programmer).
In the end, you cannot sign or agree to anything in these agreements that conflict with what rights you have under the law. It is worth it to consult with a legal rep. before you sign anything because you'll see just how weak (or strong) certain clauses in the agreements are (or aren't).
Thanks,
Leabre
My thoughts exactly.
Every person working for a company can get fired/laid off in the next 6 months. Contractors are just more aware of that fact.
The surprise isn't how often we make bad choices; the surprise is how seldom they defeat us.