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Crazy Non-Compete Contracts?

Posted by Cliff on from the gotta-make-a-living-somehow dept.

JL-b8 asks: "I've just encountered a (from what I know) strange occurrence. A group of friends who work for a small web design firm are being forced to sign a non-compete agreement with a clause that prohibits the employee from working with a competing company for 12 months, after the date of their leaving. The owners claim it's a standardly practiced clause, but I don't see how the hell a web developer/designer is supposed to find work in a city for a year, without moving to a completely different city. I'd like more input as to how this weighs in to the rest of the companies out there. Is this a common thing? If you've signed something like this, and had to switch jobs, how did it affect you?"

4 of 193 comments (clear)

  1. Ignore 'em by Utoxin · · Score: 3, Interesting

    I'm a PHP/MySQL developer, and I get asked to sign those on a regular basis. I sign them, and then forget about them.

    To be a bit more thorough in my answer, I have never flagrantly violated such an agreement. It's usually not that hard to find work for another company that isn't a direct competitor. Plus, (IANAL) I've heard that those sorts of contracts are mostly unenforceable. I could be wrong about that though, which is why I try to avoid flagrant disregard for the non-compete.

    --
    Matthew Walker
    http://www.tweeterdiet.com/ - My Diet Tracking Tool
    1. Re:Ignore 'em by Splab · · Score: 3, Interesting

      Back when I did PHP programming we had a non compete regarding costumers, if they chose to enforce it they had to produce a list of companies that I wasn't allowed to work for no later than my last day of work. Also if they chose to enforce it they had to pay me compensation for the duration of the non compete.

      They never did choose to enforce it.

  2. I'm on such a job currently... by RuBLed · · Score: 3, Interesting

    In my case, it's 6 months but it's a little forgiving since a specific industry was clearly stated. (my case: bpo) Although that still limits my options since our competitors are also one of the better places to go in case I would like to find another job.

    I know people who work in an "all purpose IT Company" that offers services ranging from outsourcing programs to supplying servers. They got a 2 yrs non competing period, the funny thing (because it's not me) is that my friend can't find an IT job anywhere since it would violate the agreement. He "had" to work in a non-IT related field, I just bid him good luck.

    And yes, such things are crazy.

  3. Re:First hit on a google search by kefoo · · Score: 3, Interesting

    I have heard of some non-competes being tossed out because the basicly left the person without employment opertunities in their profesional market.

    Here in Ohio we have a law called The Blue Pencil Rule. If a person can show that a non-compete clause is preventing them from finding employment a judge can rewrite the clause as he sees fit. There's probably something similar in many states.

    Most of the non-competes I've been asked to sign have a term of about one year. They usually specify that they only apply to working for a competitor, although on one occasion I had to get the contract amended to specify what the comapny's area of business was because the clause was so sloppily (or possibly intentionally) written that taking almost any other job could run afoul of it.