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Non-Compete Agreement Beyond Term of Employment?

stellar7 writes "I work in IT for a large company. They have recently asked me to sign a new non-compete and confidentiality agreement. I signed an agreement when I began employment, but now they want me to sign an updated one. Behind the link are a few paragraphs from the new agreement. It states that the company has a royalty-free license to any 'Invention' I create including up to six months after leaving (and the company fully owns any Invention that relates to the company in this same period). Has anyone signed a similar agreement that reaches beyond the end of employment and includes things not related to the business?"
A. Employee shall promptly and fully disclose in writing to [Company] any inventions, improvements, discoveries, operating techniques, or "know-how", whether patentable or not (hereinafter referred to as "Inventions"), conceived or discovered by Employee, either solely or jointly with others, during the course of Employee's employment with [Company], or within six (6) months thereafter.

B. Employee shall, on the request of [Company], and hereby does, assign to [Company] all of Employee's right, title and interest in any of the Inventions which relate to, or are useful in connection with, any aspect of the business of [Company], as carried on or contemplated at the time the Invention is made, whether or not Employee's duties are directly related thereto. [Company] shall be the sole and absolute owner of any of the Inventions so assigned. Employee shall perform any further acts or execute any papers, at the expense of [Company], which it may consider necessary to secure for [Company] or its successors or assigns any and all rights relating to the Inventions, including patents in the United States and foreign countries.

C. [Company] shall be the sole judge as to whether the Inventions are related to or useful in connection with any aspect of the business of [Company] as earned on or contemplated at the time the Invention is made and as to whether patent applications should be filed in the United States or in foreign countries.

D. [Company] shall have the option of taking a permanent, royalty-free license to manufacture, use, and sell any of the Inventions conceived or discovered by Employee during the course of Employee's employment with [Company], or within six (6) months thereafter, that are not assigned to [Company] under paragraph B. of this Agreement.

97 of 778 comments (clear)

  1. ask a lawyer by Trailer+Trash · · Score: 5, Insightful

    Seriously, ask a lawyer, not slashdot. I highly doubt a contract like that is enforceable (seriously, they own work you create for your next employer?) but I would talk to a lawyer. And I wouldn't even think of signing it.

    1. Re:ask a lawyer by belmolis · · Score: 5, Interesting

      The answer is going to vary from state-to-state and presumably from country to country. California, for example, has laws that greatly reduce the effect of non-compete agreements, but many other states do not. Furthermore, the question of whether they can insist that you sign a new agreement as a condition of continued employment will depend on whether you are in an "at will" jurisdiction or not.

    2. Re:ask a lawyer by mrbluze · · Score: 4, Interesting

      Seriously, ask a lawyer, not slashdot. I highly doubt a contract like that is enforceable (seriously, they own work you create for your next employer?) but I would talk to a lawyer. And I wouldn't even think of signing it. A friend of mine had to sign one in order to start work at Agilent / HP. They can't really 'own' you, but because they own any ideas you come up with during your time at the company, they can screw you for any derivations on your previous work .. at least they say they can. I haven't heard of a case where this was challenged in court, but frankly, any company that wants this from an employee shouldn't have an employee. I think it was Oscar Wilde who said something like, "If this is how the Queen treats per prisoners, then she doesn't deserve to have any!".
      --
      Do it yourself, because no one else will do it yourself. [beta blockade 10-17 Feb]
    3. Re:ask a lawyer by lena_10326 · · Score: 4, Funny

      And I wouldn't even think of signing it.
      Good luck on your job search. Keep us updated.

      --
      Camping on quad since 1996.
    4. Re:ask a lawyer by imp · · Score: 5, Informative

      While the answer varies from state to state, I'll quote what my lawyer told me when I took him one of these employment agreements. "Warner, never hesitate to sign a vague, badly drafted employment agreement." Basically, for my situation, the upshot was that the agreement was so vague as to what it covered that read literally one would have to tell the company everything I ever thought. New idea for a flavoring for brownies, tell the company. New sexual position to try with the wife, tell the company. Plot for a sitcom staring 13th century spanish cardinals talking about the philosophical conundrum the Islamic occupation of the Iberian peninsula presented, tell the company. Clearly, no court in its right mind would enforce such an over-reaching and broad contract.

      In addition, certain states, such as California, have laws that say, as a matter of public policy, that if you do something on your own time with your own resources, you own it.

      Also, since you didn't post the entire agreement, there's no way to know if there's anything else in it that might be bad, or worse than what's presented here.

      However, without having both a license to practice law, or the entire text of the document in question, the above is prelude to the following non-legal advice: See a lawyer. It cost me about $300 when I needed to get a couple of different documents reviewed.

    5. Re:ask a lawyer by stormj · · Score: 5, Informative

      Not enforceable in California. Bus & Prof Code Section 16600.

    6. Re:ask a lawyer by ShieldW0lf · · Score: 2, Insightful

      I've had such agreements placed before me before. I specifically demanded that they be removed, and that I have specific assurances to the contrary. One time I even got it.

      I wouldn't sign such an agreement with anyone, personally. Money is too easy to find to justify indenturing yourself in such a way just for a job.

      --
      -1 Uncomfortable Truth
    7. Re:ask a lawyer by littlerubberfeet · · Score: 5, Insightful

      I have dealt with some smaller music contracts that are 25 pages. 5 of those pages are definitions. Definitions are where artists either get screwed or get well-paid.

      I have had glimpses of financial deals between large (Fortune 50, yes, five zero, not five hundred) financial institutions. One contract ran 30 pages. The definitions for it ran almost 100 pages.

      The point is, talk to a lawyer. It is worth the $300-$500 it will cost.

      --
      Sig (appended to the end of comments you post, 120 chars)
    8. Re:ask a lawyer by lena_10326 · · Score: 4, Insightful

      If they state nothing, then take a copy home and do not sign it. When, later, they ask you for the signed copy, inform them that you never signed it and are not getting anything from the signing of it. They are free to fire you, however you *will* take this to the unemployment office to get full compensation as it is illegal to your employer has fired you for an outright illegal reason.
      Nobody wants to fight that fight. Most employees with families need to know that paycheck will keep coming, so they won't do anything to jeopardize that. The reality is many of these contracts are unreasonable and would be seen as such by a judge, so it's easier to sign and worry about the consequences later. Most of the time there are no consequences, but you can always take precautions to minimize the chance. Things like making sure your next employer is not a direct competitor or not telling co-workers where you're going. Make-up a story and lie. They generally won't question you too much if your lie sounds plausible. The less your current employer knows, the lower the chance of being pursued.

      I know of 3 people my last employer sued, but to be honest, they deserved to get sued. They went to work for highly visible competitors who had exactly the same type of product (and they were sales people, not developers). One even tried to take his client list with him. Bad idea.

      --
      Camping on quad since 1996.
    9. Re:ask a lawyer by bm_luethke · · Score: 3, Interesting

      I knew someone about 10-15 years ago that it happened too - they lost (in Tennessee).

      Of course, not being a lawyer I can't say - however I rather suspect it is quite enforceable if you create something the company works on. That is - if you work for Microsoft and you invent some nifty software at home you have little to stand on (especially if you are a software engineer). I think it would be fairly easy for them to argue that you, at the very least, used company resources to learn and you are payed to write software (effectively the case of the person I mentioned above). The further away you go from there I simply do not know - I know that some places hire you as a "researcher" to make that as broad as possible. As to how enforceable that is I would guess it would depend on your state (and the one case I personally know of is old enough new laws may vary well have been passed).

      I'm also under the impression that short term non-competes are pretty much enforceable. While I didn't personally know any people who fought them, there were quite a number of news stories about such contracts during the DotCom bubble. Many had *permanent* non-competes, that was obviously unenforceable, but the trade mags said that the limited, reasonable term stuff was. Reasonable being up to the judge and state legislature and of course a state may very well totally nullify such things too.

      Of course, were I the OP I would get a lawyer to look at it - there should at least be some monetary compensation for those six months if the company was the one to decide to terminate the position. I rather suspect that the "all inventions" clause could be re-worded to where both sides are happy.

      In both cases I can see the point of the employer - they do not want you to have advance internal knowledge of their product, quit, and go "sell" yourself to their main competitor (and that could very well happen given how much some software is worth, how much money several companies have, and that those companies aren't the most honest places on the planet). I can also see why a software company would feel they own your software if you are a software engineer, they are paying you to do that and there is no way you can totally separate yourself from the company.

      Of course if they terminate your employment with them then they should not be able to detain you from earning an income for those six months nor should they own a lawnmower blade you made if you are a software engineer.

      Normally such things *can* be negotiated without a big hassle.

      --
      ------- Sorry about the spelling, I suffer from two problems. Dyslexia makes it difficult to spell well, lazy makes it
    10. Re:ask a lawyer by lena_10326 · · Score: 3, Informative

      he
      God, I hate that. It's she.

      but if you really prefer to sign away your freedoms than to stay unemployed for a couple of months, then that explains why the US is so screwed up.
      Anyway. I must believe you don't work in USA then, because I've never seen an IT job without a non-compete requirement in the last 13 years of my career.

      The only difference between this non-compete and non-competes I've signed is their claim of ownership on new products developed after termination, however I've seen non-competes laying claim on very general things from everything created after hours to things created on your personal desktop.

      First, it's a bullshit scare tactic. Second, signing doesn't mean you're signing your freedoms away. Here, if a contract violates the law, it's unenforceable regardless of your signature. And third, you really have no choice but to sign if you plan to work in USA. I suppose you could find a very small IT company that doesn't push non-competes, but it'll be hard to find that. You won't be unemployed for a "couple of months", you'll be unemployed for YEARS with that sort of search criteria.

      --
      Camping on quad since 1996.
    11. Re:ask a lawyer by Garridan · · Score: 5, Informative

      Yup. I saw that in a contract, told my soon-to-be boss that there was no way in hell that I'd ever sign such a thing, he talked to his lawyer, and we got it stricken from the contract. That easy.

    12. Re:ask a lawyer by timmarhy · · Score: 2, Insightful

      sued for just leaving to work for a competitor? granted taking a client list or clients with them isn't right, but just leaving to work for someone else should be ok. employment is a competitive industry like any other and so shouldn't be restricted by monopolising peoples opertunities.

      --
      If you mod me down, I will become more powerful than you can imagine....
    13. Re:ask a lawyer by daVinci1980 · · Score: 5, Interesting

      God, I hate that. It's she.

      You must not write on the tubes much. Newsflash: if you go to a site that has 95%+ male readership and are surprised when people assume you're male when you have (at best) an ambiguous handle then... Well, I have nothing. You probably get surprised easily. Boo. Did that surprise you? I expect it did.

      I must believe you don't work in USA then

      I work for nvidia. My employment contract said:
      a) Any inventions I invent on my own time with my own equipment are mine.
      b) Any inventions I invent on their time and/or with their equipment are theirs.
      c) I can leave nvidia whenever I want (duh) and go work for whomever I want, on whatever project I want.

      All they ask is that if I'm thinking about leaving, I let them know so they can see if they can make the reason I want to leave go away.

      You can have my job when you pry it from my cold, dead fingers.
      --
      I currently have no clever signature witicism to add here.
    14. Re:ask a lawyer by Anonymous Coward · · Score: 2, Interesting

      The parent seems to represent the reaction of most. It just feels wrong for the dead hand of an old employer to reach into the future and take from you. Since most of the comments thus far have been from those in IT who are affected by agreements by this, I'll share some thoughts from someone who has gone to law school and is a Patent Agent.

      Realize that this isn't a new problem and that this company isn't particularly clever. IP rights have been contracted for by employers for a long time. Any significant employment agreement will address it. But patents are a special case. Unlike copyright's works-made-for-hire which allows a company to have ownership of a copyright of a work they commissioned, patents must be issued to the true inventor (yes, this is a US-centric discussion). So if an employee invents something, how does a company come to own it?

      "The employer has no equity to demand a conveyance of the invention, which is the original conception of the employee alone, in which the employer had no part. This remains the property of him who conceived it, together with the right conferred by the patent, to exclude all others than the employer from the accruing benefits. These principles are settled as respects private employment." United States v. Dubilier Condenser Corp., 289 U.S. 178, 187 (U.S. 1933).

      So that's well and good for inventions totally unrelated to duties within the scope of employment. How about the middle ground? A "shop right" may exist where there's no explicit agreement, but the employee uses the owner's resources to invent something. Thus, the employer may be able to get what appears in subpart D above.

      Now, let's say the employee was hired to invent something. The hired-to-invent doctrine suggests that inventions that are a product of such a relationship should be assigned to the employer. All of this seems to be present in the agreement above.

      So where are the problems? The scope of the agreement. I'm not convinced that the collective's theory that this is invalid as a non-compete is the way to go. (Some people have suggested that this is simply invalid in California. Note also that California severely limits the ability of an employee to dictate the terms of an assignment of patent rights to employers.) So what makes a non-compete invalid? First, it has to be ancillary to some other valid transaction. Here this seems to be the creation of an employment relationship - so we're ok there. Second, the restraint can't protect beyond the employer's legitimate interests or unduly burden the employee or the public. (See REST 2d CONTR 188.) Basically, don't make it too broad or unreasonable. It's clear what the employer is trying to do here: keep you from taking your inventions that they paid for (or what are now their trade secrets) and running with them. They aren't trying to keep you from inventing elsewhere and obviously have no right to those unrelated inventions. This part of the agreement isn't well worded. The thrust of the agreement is: they own what they hired you to invent, even if that inventive step doesn't occur until 6 months down the road. They got you thinking about a particular problem, and the solution may come after business hours while watching TV or after you leave the job. This seems to be within their interests and therefore isn't an impermissible restraint on trade. They aren't trying to stop invention; they just want a return on their investment.

      The executive summary is this: the contract isn't clearly invalid as many have suggested. So I wouldn't just sign it because you think the whole thing is rubbish (or even if you think portions are rubbish that could be blue-penciled out). It's just hard to imagine a scenario where 3 months after leaving the job you come up with an invention that wasn't the result of your employment but would have fit under subpart B that directly relates to your job and what you were working on. These are intellectual property rights and they are paying yo

    15. Re:ask a lawyer by butlerdi · · Score: 2, Insightful

      In many industries such as advertising often the only reason you get the job is the clients you can bring. This has always been the case in sales, marketing etc.

      --
      "If the King's English was good enough for Jesus, it's good enough for me!" -- "Ma" Ferguson, Governor of Texas (circa
    16. Re:ask a lawyer by Lathiat · · Score: 2, Insightful

      It's interesting - in Australia non-competes (as in you can't work for another company like ours for 6 months after, etc) are actually unenforceable

      What is enforceable, however, is the company can choose to continue paying your wage for 3-6 months to have you to nothing and otherwise prevent you from working there. They can't just leave you out with no pay unable to work for a company, however

    17. Re:ask a lawyer by bigstrat2003 · · Score: 2, Interesting

      You know... it's a curious thing we citizens of supposedly 'free nations' are expected to happily yield increasingly large amounts of our freedom... That only applies if it's a contract between you and the government. The corporation is also free to hire (or not) who they choose to, under whatever conditions they choose to (as permitted by applicable laws, of course). You, in turn, are free not to accept their terms. See, saying things about a "free nation" implies that we're free with respect to the government. It implies nothing about our freedoms with respect to fellow citizens, and businesses run by them.
      --
      "16MB (fuck off, MiB fascists)" - The Mighty Buzzard
    18. Re:ask a lawyer by lena_10326 · · Score: 2, Funny

      This just in: You undermine your credibility when you expose your prejudices. Your hostility betrays you.
      That's a bit hyperbolic. I'm curious, what are you smoking?

      --
      Camping on quad since 1996.
    19. Re:ask a lawyer by hyc · · Score: 4, Interesting

      Been there, done that. Their idiotic agreement would have claimed ownership of *ANY* intellectual property I created, even on my own time and my own gear. And it was so general it would have applied to all the music I've composed for my band, as well as software I wrote in my hobby activities. (Both totally ludicrous; I was still developing on Atari STs back then. Stuff that would have absolutely zero relevance to my day-job enterprise software coding. But it's all "IP" and that contract would have laid claim to it.) I refused to sign, left, and started my own company. Today we market commercial support for the fastest LDAP server in the world, and my code totally obliterates the performance of anything that other company makes. And of course, all my code now is open source. No more proprietary bullshit.

      Some things must never be compromised.

      --
      -- *My* journal is more interesting than *yours*...
    20. Re:ask a lawyer by stellar7 · · Score: 5, Informative

      I'm the original poster. I spoke to a lawyer, and he told me that in my state this type of contract would hold and that the employer can punish employees in any way for not signing. So, I'm thinking I just need to find a better employer.

    21. Re:ask a lawyer by AVee · · Score: 2, Insightful

      Nobody wants to fight that fight. Which is, in a nuttshell, why companies get away with crap like this. Eat it (but then, stop whining about it), or fight the fight. You may very well win.
    22. Re:ask a lawyer by ultranova · · Score: 3, Funny

      Then maybe people should just stop assuming and write in a gender-neutral way. It really doesn't take much effort. "He or she" takes half a second more to type.

      But what about hermaphrodites ? After all, they aren't "he or she", but "he and she". You need to write "he and/or she". But even then you run the risk of offending the odd person who has been born without genitalia of any kind, or perhaps asexual aliens who may be reading Slashdot; so better use "he and/or she or it". But what if the aliens have three genders ? Two of them get referred to as persons - "he" and "she" - while the third is referred to as "it", likening it to an animal or object.

      So, in the interest of political correctness, call everyone "it". It's the only way to guarantee equal verbal treatment of all possible gender combinations, altought it of course still horribly discriminates against nonentities, since "it" can only refer to an entity.

      That, or simply ignore the people who take personal offense when someone doesn't know their gender and doesn't go out of his way to not have to guess.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    23. Re:ask a lawyer by AVee · · Score: 2, Funny

      God, I hate that. It's she. I am not going get into al the arguments about wether or not it was God's fault, or if he is able to fix it. At least not on slashdot.

      But, even though I don't mind the fact that you are a girl (and I supposed this goes for 99.8% of the slashdot readers), if you really hate it that bad you can have that fixed these days. Being a boy isn't as terrible as you may think it is, I for one have quite liked it so far.
    24. Re:ask a lawyer by Lwood_at_COG · · Score: 5, Interesting

      Or a better state...

      In Ontario, this might be construed as "constructive dismissal". From what I've experienced here, signing any employment contracts is a bad idea. Without an employment contract, you'd be covered by common-law, which is generally favourable to the employee regarding severance amounts, etc. Employment contracts usually replace all that with explicit terms that favour the employer.

      IMHO, you'd have to be NUTS to work as an employee in high tech outside of government or unionized employers. Ontario's labour laws are terrible for "technology professionals". As unemployment rates are very low, and there is plenty of unfulfilled demand for skills, you're far better off subcontracting, where the legal relationship is between corporate peers. Some of the rights you retain as a subcontractor include:

      - pay by the hour, if you so arrange. No unpaid OT.
      - the right to conduct business with other clients

      normal employer rights that are NOT applicable in contracting:
      - the right to supervise and direct
      - the right to set hours of work (duration and timing)
      - exclusivity to all the employee's production, intellectual or otherwise, regardless of whether the efforts were during paid working hours.

      There is a lot more variation and flexibility in terms, and you still have to keep your clients happy - i.e. they won't be happy if you openly compete against them and work 3h/week, and your contract will be cancelled.

      If you are a non-unionized employee, remember, the only real power you have is to quit.

      --
      "Beware of all enterprises that require new clothes." --Henry David Thoreau
    25. Re:ask a lawyer by Strategos · · Score: 2, Insightful

      I would argue that your free time is your free time, fair enough if they are paying you 24x7. ie normal hours plus overtime otherwise I wouldn't be signing it. If they are going to claim your work outside of hours then at least get paid for it.

    26. Re:ask a lawyer by mrchaotica · · Score: 3, Insightful

      Then maybe people should just stop assuming and write in a gender-neutral way.

      Maybe people should just realize that "he" is the gender-neutral pronoun in English! All you dipshits butchering the language in the name of "political-correctness" can kiss my ass!

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    27. Re:ask a lawyer by olorinpc · · Score: 2, Insightful

      Those are becoming fairly standard, and it is quite common to ask for that part to be rewritten on an individual basis. I had mine rewritten to include a clause about being specific to company business etc.

    28. Re:ask a lawyer by torkus · · Score: 5, Insightful

      My Suggestion:

      Require an additional clause added where they guarantee you 6 months severance pay should you leave the company for any reason while that agreement is still in effect.

      Yes...refuse to sign. Or better - just ignore it. Put it off, defer them, 'will get around to it'...till they either forget or you find a new job.

      New job...good call. On your exit interview point out that you're leaving because the company clearly has no interest in treating people fairly or even caring in the slightest bit about them.

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    29. Re:ask a lawyer by BVis · · Score: 2, Interesting

      I don't think your example is relevant to most U.S. readers. In Canada (and most other civilized countries) workers actually have some rights regarding recourse for termination and unfair labor practices. In my state (Massachusetts) pretty much the only rights you have are these:

      1) Timely payment of wages (enforceable by the Attorney General, as well as your own lawyer for triple damages)
      2) Minimum wage ($8 as of the first of the year, still a fucking joke)
      3) The right to take a twelve week leave without pay for childbirth/adoption
      4) The right to quit a job without notice
      5) ... That's pretty much it.

      No right to severance, regardless of length of employ. No right to appeal a termination. No right to notice of a termination. Around here they don't even have to give a reason for firing you. They can just tell you some day "You're fired, get out" without any further information. I actually had someone tell me "We don't have to tell you" when I asked why I was being let go. Your ex-employer can also fight your unemployment claim for no reason whatsoever other than it makes their unemployment insurance premiums go up.

      As far as IP goes, everything you produce during your employ belongs to the employer if they so choose. Sure, you can fight it (and they may not have a right to it, depending on the interpretation of the applicable law) but lawyers are expensive.

      Even employment contracts that give you more rights than the law requires are unenforceable in this state. At-will employment trumps all of them. Your employer basically has impunity to screw you 17 ways without so much as buying you a drink first.

      --
      Never underestimate the power of stupid people in large groups.
    30. Re:ask a lawyer by mdwh2 · · Score: 2, Insightful

      That only applies if it's a contract between you and the government.

      Except any agreement enforced after you left would have to be enforced by the Government!

      Enforcing non-compete agreements, and enforcing that the company owns a patent, and not you, are most certainly actions being made by the Government. Or to put it another way - if things were really as "free" as you say, then yes, the company is free to hire who they like, but the employee would be free to work for who they like as well as being free to use his inventions, and the employer could do nothing about it. What are they going to do, fire you?

      Yes, people should be free to make whatever contracts they like, but in a free world, I do not expect the Government to enforce every kind of contract, when both parties no longer consent.

    31. Re:ask a lawyer by mdwh2 · · Score: 2, Insightful

      In a "thinking" job (as opposed to a "doing" job), it's really hard to prove that you didn't spend any time on it while at work and vice versa

      That vice versa is important. If any company put that argument to me, I'd bill them for the time I spend thinking about work matters outside of work.

      if your work entails writing software to track stocks and then while at home you write a similar product, even if completely on your own free time with your own personal resources, etc. Don't you think your employer would have some greivance with you?

      But that's not what we're talking about - that would clearly be a conflict of interest. No one is suggesting ripping off the company by reproducing the same thing outside of work, or making a competing product.

      That isn't an argument for claiming ownership of all IP.

    32. Re:ask a lawyer by WebCrapper · · Score: 2, Informative

      I would strike out the whole "all works owned for up to 6 months after employment" and offer to sign that. If they wouldn't accept that, I'd turn in my notice of intent to leave as of X date. Give as much notice as you can, something like a month. Depending on the state, they may have to pay you for the total time, if they decide to let you go before then.

      If enough employees insist on not signing that block, they may remove it anyway.

    33. Re:ask a lawyer by Svartalf · · Score: 3, Informative

      Fair warning, it's not always that simple. I've been dismissed 12 months into a job because I wouldn't sign (That wasn't the stated reason- I was "laid off"; which in reality was they let me go, they "let go" someone in the California offices and "hired" a contractor for the position that was strangely the same person they "let go".)- be prepared to get told "NO" on this. My situation will probably be resulting in a lawsuit as it's pretty much illegal for them to pull this stunt in the first place- you can't pull the "you have to sign" thing after you've let me work for you any length of time (magic deal there...).

      As it stands, there's far, far too many "clever" corporate counsels, too many businesses that think they own you and they're entitled to shake a stick at. Thankfully, there's more than enough places that aren't idiotic about this that it's only moderately problematic.

      --
      I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
    34. Re:ask a lawyer by porcupine8 · · Score: 2, Interesting

      The username "Lena" is kind of a tipoff, y'know. This is why I have my gender in my signature - but then you get people who don't read signatures, and when I post something particularly girly assume I'm a very effeminate man or something. It does get grating.

      --
      Warning: Apple/Nintendo fangirl. Likes her electronics cute & cuddly. May be rabid.
    35. Re:ask a lawyer by RonBurk · · Score: 2, Funny

      That's right. And people should realize that English never changes.

      I always thought that "PC" stood for "plain courtesy". It seems to fit just fine everywhere I see someone ranting about "political correctness".

    36. Re:ask a lawyer by Courageous · · Score: 2, Interesting

      It's considered normal for an employee to demand one-to-two years of severance for every year of non-compete. I'd say counter offer, and if there are any questions, remind them of the realities. Asking you to not have income after your employment ends is, of course, intrinsically unreasonable. A family's gotta eat. These things started off in executive space, where the extra severance for the non-compete is just par for the course. You should, as part of your counter offer, request the severance should your employment end for any reason, including if you quit. They can then counter offer themselves. Just see how much they value your non-competition.

      This is exactly what I would do when faced with a post-termination non-compete. If you're a software person, you could take the year off to write some kind of big open source project or some such, to keep yourself current....

      C//

    37. Re:ask a lawyer by coolGuyZak · · Score: 2, Insightful

      I consider "he" gender-neutral as well, but it's still wrong (at least, in the US). According to the Oxford American Dictionary:

      Until recently, he was used uncontroversially to refer to a person of unspecified sex, as in : every child needs to know that he is loved. This use has become problematic and is a hallmark of old-fashionedness and sexism in language. Use of they as an alternative to he in this sense : (everyone needs to feel that they matter) has been in use since the 16th century in contexts where it occurs after an indefinite pronoun such as everyone or someone. It is becoming more and more accepted both in speech and in writing and is used as the norm in this dictionary. Another acceptable alternative is he or she, although this can become tiresomely long-winded when used frequently.

      What really irks me, though, is when a woman takes offense to being called a "dude". :-p

    38. Re:ask a lawyer by HarvardAce · · Score: 2, Funny

      Maybe people should just realize that "he" is the gender-neutral pronoun in English! All you dipshits butchering the language in the name of "political-correctness" can kiss my ass! Or, for an even better solution, you can just use "dipshits" and never have to use "he" or "she" or any other pronoun!
      --
      Note to self: Stop putting jokes in my insightful comments so I can get something other than +1 Funny!
    39. Re:ask a lawyer by sumdumass · · Score: 4, Insightful

      No right to severance, regardless of length of employ. No right to appeal a termination. No right to notice of a termination. Around here they don't even have to give a reason for firing you. They can just tell you some day "You're fired, get out" without any further information. I actually had someone tell me "We don't have to tell you" when I asked why I was being let go. Your ex-employer can also fight your unemployment claim for no reason whatsoever other than it makes their unemployment insurance premiums go up.

      This tends to change with a variety of factors. For instance, the employee handbook and internal company policy in most cases provide for severance pay and restricts the ability to let you go except for certain reasons. This hand book or internal company policy is viewed as a contract by most all courts and would supersede the states requirements if they are less. Of course they usually place something in the handbook that included insubordination or something that lets them dismiss you without an actual cause. That's where unemployment kicks in.

      Now unemployment can be contested for any reason but, they have to have a reason to fire you. I'm in Ohio where you don't necessarily get unemployment if they had reason to fire you. It has to be a good reason too. They can fight it all they want but at most, they will only delay when you receive the unemployment if they don't have a substantial reason to fire you. The employer sometimes thinks that you will get another job and forget about it and they won't have it effect their premiums. But you can still fight their claims after you start working another job in most cases. There are around five states that you have to have cause for to fire someone and their laws are generally different including the right to sue for wrongful termination. Each state has a labor board that can levy fines on most employers with more then 15 employees according to practices that are either against the state law or employee handbook. For some reasons, they don't tall you that in school when they train you to become an employee somewhere.

      Even employment contracts that give you more rights than the law requires are unenforceable in this state. At-will employment trumps all of them. Your employer basically has impunity to screw you 17 ways without so much as buying you a drink first.

      While technically true, it is wrong to some degree. Even in Massachusetts, contract law is just that. You might not have a job at company X because of the At-Will status but that doesn't mean you don't have recourse. Of course then you are back to finding who either thinks your case is worth something to take it on commission or one who will take your money up front. Some of the stuff can be taken care of by you too. I have a cousin who lives in Mass. She took 4 weeks off to have a baby and after returning to work, they wouldn't give her position back because the person who filled in did a better job. So she had to take another position that required more physical labor and they fired her two months later for no reason after writing her up for not doing the job in a timely manor. It was true that she didn't get her job back but she took it to court and got back pay from the time they let her go up until the time she received her first paycheck from her new job and attorney's fees. She didn't really look hard for a new job because she was taking care of the kid so it was about a year or so that she had been paid.

      Now you might think it has something to do with the family medical leave act but the reality is that the only thing related to that was she had a doctors slip limiting her lifting and repetitive motion for 2 or three weeks after she went back to work.

      The bottom line is there is more recourse then people think. They are often discouraged in taking some of that recourse because of funding or they just don't know about it or it becomes a hassle or they have already moved on or what ever.

    40. Re:ask a lawyer by Danger+Stevens · · Score: 2, Insightful

      Then maybe people should just stop assuming and write in a gender-neutral way.
      Maybe people should just realize that "he" is the gender-neutral pronoun in English! All you dipshits butchering the language in the name of "political-correctness" can kiss my ass!
      "They" is the modern gender-neutral 3rd person singular pronoun in American English. You're thinking of the 'Universal He' which is a poetic device of referring to mankind as 'He'.

      To be gender neutral you can't just assume they're male. And any woman who is willing to endure the sexism and bullish male majority online deserves plenty of respect.

      [Credentials: B.A. in Linguistics]

      --
      World Changing - News for Humans, Stuff about our planet
    41. Re:ask a lawyer by einhverfr · · Score: 2, Informative

      Note that here in Washington, we have at-will employment laws too. The idea is that an employee can quit without notice, and an employer can terminate the employment without notice. This is fair. I have unfortunately had to be in both sides of this in the past and have had to quit a job without notice and yet remain on good terms with my former employer. But this varies from state to state.

      Anyway the key thing about employment contracts is that they should be bilateral. This shouldn't be the employee giving up additional right in exchange for employment but either a clarification of expectations or an exchange of additional promises (you agree to give x weeks notice, and I agree to a severance package if I terminate your employment without notice, for example).

      Typically non-compete clauses do last beyond the terms of employment though my business has no need for such terms. They should be appropriately scoped, however. I.e. when I worked for Microsoft I was barred from competing with them in areas where I had access to trade secrets for a period of 6 months (iirc, might have been a year) after working for them-- the goal was quite clearly to prevent me from taking Microsoft source code and giving it to competition. This was reasonable. Their moonlighting policies were also somewhat reasonable (but less reasonable since at one point I had moonlighting permissions revoked because Microsoft decided to get into a market where I would be competing with them).

      If things are too one-sided you need to be looking for another job. If you are a good worker you should always be able to find a way (even if it means starting your own business). I hate to plug Microsoft on this forum but I did find their practices reasonable in these areas. I would sooner work there again then at a place that was much more one-sided regarding employment. But then, my company is hiring Perl and PL/PGSQL programmers (email resume to chris@metatrontech.com) for work on FOSS projects.

      --

      LedgerSMB: Open source Accounting/ERP
    42. Re:ask a lawyer by jc66 · · Score: 2, Insightful

      I got given something like this and told that it 'just cleared up some legal stuff connected with intellectual property' and was asked to sign it so that my review could be cleared and I could get my (rather large) pay increase. One of the new clauses was an extension of my notice period from one to three months Well, I put it on my shelf, unsigned, forgot about it, next month got the pay increased, and never thought about it again till the day I handed in my resignation and was told by a manager that actually I couldnt leave as soon as i stated on my letter due to the new employment contracts... and guess what i had to say about that :)

    43. Re:ask a lawyer by Toad-san · · Score: 2, Interesting

      Yep, me too, several times. One actually tried to grab everything I'd ever program (I was a programmer) _forever_ .. in that particular area of programming. Forever. Yeah, right, fat chance. I responded with my own nondisclosure agreement (very limited, very much to the point), and several insults about lawyers. The decision makers were embarrassed at the horribleness of their boilerplate employment and nondisclosure agreements, and ended up rewriting them all.

    44. Re:ask a lawyer by TekPolitik · · Score: 2, Funny

      there's a reason why handwritten modifications to contracts are generally initialled by both parties

      Type up a new version of the signature page, adding a new final clause:

      All other clauses are null and void unless, prior to the seventh day after the employee signs this document, the entire area of Washington DC is destroyed by a meteor strike.

      Give it to them eight days after you signed it. Hey, somebody who asks you to sign this document is not respecting you, why should you show any more respect?

    45. Re:ask a lawyer by IronClad · · Score: 2, Informative

      While asking a lawyer might be a good idea, a lawyer cannot give you all the information you need to make this decision. You really need a good handle on:

      1) Your relationship with your boss

      2) Where this initiative is coming from (how far removed from your boss and how influential)

      3) The perceived value of you personally to the company

      4) The level of your own personal negotiation skills

      5) Your perceived integrity

      Unless you can accurately assess all of those items, in addition to the legal questions of enforceablilty and compliance with labor regulations, you cannot answer your question. Remember that the legal questions, especially enforeceability, only matter if you have the cash, stamina, strength of will, etc. to go to court. Most people don't. Don't expect the company to give hoot about what your lawyer thinks.

      I faced a nearly identical situation 5 years ago, an additional agreement, even the language reads remarkably like what I saw. I had a strong enough position and was perceived to have sufficiently rare skills that I was able to stare down the requests, but not without some *very careful* negotiations. I had to answer verbal cajoling like the following:

      "Aww, the company doesn't ever really expect to enforce those provisions, we trust you, they're just to make the lawyers happy" -> "If you don't then we don't need a signed agreement, right?"

      "You're the last one not to sign this." -> "I'm the only one left who invents stuff around here."

      "It's perfectly legal." -> "Are you practicing law now? I'm still waiting to hear from my lawyers and the Department of Labor."

      "You're an at-will employee." -> "Then why should I agree to a contract that extends my obligations, but not yours? What's my consideration?"

      "We don't want anything but ideas that you invented here." -> "You've already got those, and besides that's not what the contract says."

      So my advice is:

      0) Be nice about it. Express honest misgivings. Don't be a prick, and don't confront.
      1) Delay delay delay. You may be on your next job anyways by the time it's resolved.
      2) Go out on the market immediately, and assess your hireability elsewhere. Have an offer in your back packet just in case. DO NOT BLUFF. (You may just find you're happier elsewhere anyway..)
      3) Consult a good labor lawyer IFF you have the will to go to court to enforce whatever rights he says you have in your venue.

      I did all the above exept #3, and was offered a much better place to work while the issue dragged out over 3 years. I did not sign, and I left voluntarily. YMMV.

  2. What's the legality of contracts, exactly? by Joelfabulous · · Score: 2, Insightful

    I'm wondering if there are any federal restrictions imposed on contract law in the States / Canada / Europe / anywhere else when it comes to inventions being the property of the company... It seems strange to me that, if you make something on your own time, it's the property of the company. That sounds kind of megalomanicial on some level.

    --
    Sometimes I wonder if I think too much.
    1. Re:What's the legality of contracts, exactly? by lpq · · Score: 2, Interesting

      It depends on the state in the US -- specifically, in techno-centric California, such non compete agreements are not only unenforceable, but are also *illegal* to put in an employment contract. What you do on your own time with your own computer is "yours" unless it substantially overlaps the major business of your company -- then the company will probably win as they'll likely have more legal and monetary resources to carry on a lengthy legal battle. :-(

    2. Re:What's the legality of contracts, exactly? by Ziest · · Score: 4, Interesting

      The 9th circuit court (California, Oregon, Washington, etc.) has ruled these sort of agreements as void. They are deemed to be prior restraint and hence the agreement is unenforceable. Outside of the 9th? Unknown. Either way talk to a lawer. Most likely her/she will laugh at this agreement. However, what ever work you do on your own time, make sure you do not do it on company time or equipment.

      --
      Another day closer to redwood heaven
    3. Re:What's the legality of contracts, exactly? by Opportunist · · Score: 3, Informative

      In Europe (at least in those parts that I know) it's fairly simple: Nothing you create outside of work can be claimed by your employer, unless he can somehow prove (or at least convince a judge) that you were using company resources to create it.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    4. Re:What's the legality of contracts, exactly? by DustyShadow · · Score: 3, Informative

      Seeing as how the 9th Circuit Court is federal, it was probably interpreting California law and California case law when it made that decision.

  3. Take it home. by Silverlancer · · Score: 4, Insightful

    Take it home.

    Cross out the parts you think are ridiculous.

    Sign it.

    Return it.

    1. Re:Take it home. by hcmtnbiker · · Score: 5, Insightful

      Cross out the parts you think are ridiculous.

      Sign it.


      Last I knew all that achieved was voiding the entire contract unless they initialed all the parts you crossed out. And I assume the old one would still be binding in that case.

      --
      If i had one dollar for every brain you dont have, i would have $1.
    2. Re:Take it home. by Moofie · · Score: 4, Insightful

      Right, so until they accept your changes, the new bogus contract is void. That's about perfect, innit? The old contract that had already been agreed to will still be in force, and the new ridiculous one will be void.

      Mission accomplished.

      --
      Why yes, I AM a rocket scientist!
    3. Re:Take it home. by ScrewMaster · · Score: 2, Interesting

      The Microsoft culture hates people that don't do everything they're told to do even when it is stupid and useless.

      Well, we all know what happens to malfunctioning drones ... they are immediately cut off from the rest of the collective.

      I worked a full-time job as a game developer (this was some twenty years ago) and they had a particularly nasty employment contract (among other things, that after quitting I was enjoined from working as a game developer for a period of five years, they owned any game-related idea or product that I would produce for an indefinite period, etc. etc. ... pretty unbelievable document.) As it happened, when I was hired I was given the usual bunch of paperwork to sign and return. I just didn't bother to return the contract, figured I'd wait until somebody noticed. Well, about a year later the president's secretary comes over with a clipboard, with some papers on it and blank piece on top covering everything but the signature line. "Here, you need to sign this." "What is it?" "Just sign it." "Nope, gotta see it first, duh." Turns out it was that contract. I told her "Not gonna sign it." Next thing I know the personnel manager comes over and tries to talk me into putting my JH on it, "It's just the standard agreement, all the other developers signed it." "Then they're idiots. I'm not signing that until you take out all the crap." Then my manager tried to order me to sign it. I told him where do you get off talking to me that way.

      After that, I never heard another word about it. I worked there for a couple of years without having an employment contract. What the legalities of that are, I have no idea ... but at least I had the satisfaction of telling them to go screw themselves.

      --
      The higher the technology, the sharper that two-edged sword.
    4. Re:Take it home. by DrEldarion · · Score: 2, Insightful

      Depends on the state. In some states, they can let you go for whatever they feel like, so long as it isn't discriminatory. If they say that a condition of employment is that once daily, everyone must jump on one leg for a minute, then they can fire everyone who doesn't do it as long as they're not handicapped.

      Am I exaggerating? Hmm...

    5. Re:Take it home. by El_Muerte_TDS · · Score: 2, Funny
      http://worsethanfailure.com/Articles/Security_by_Insanity.aspx

      "You ... altered The Contract" he mumbled.

      "No," I corrected him, "I made a few notes on the review copy you gave me; you told me to review it, and so, these are my notes."

      "You altered ... The Contract!," he insisted.

      "Errm ... no," I didn't know how simplify it further him, "this is not a contract unless we both sign it.
    6. Re:Take it home. by Antique+Geekmeister · · Score: 2, Insightful

      As amusing as this is, if I caught you doing this to a contract I had to counter-sign, I'd find an excuse to fire you so fast your you'd make a sonic boom leaving the building. If you do this sort of stunt to corporate contracts, what are you doing to your other paperwork? Or your checks? Or our contracts with partners? Or your software specs? Or your safety test results for your hardware?

      Putting one over on "them" can be fun, but how can anyone trust you on other matters if you pull this sort of stunt?

  4. What do you get in return? by rastoboy29 · · Score: 4, Insightful

    Contracts must be a two way street to be legally binding.  What do you get in return for signing this?  More money?  I'd guess not.  If you want to see an interesting blank look on your boss' face, ask him what you're getting in return.

    Ask if you'll be fired if you don't sign it.  That'd be interesting, too.  Contracts made under duress are also not binding.

    I would say that I'm not a lawyer, but I'm not a fucking lawyer and so I don't have to put stupid legalese into my posts!

    1. Re:What do you get in return? by sharkb8 · · Score: 2, Insightful

      he gets to keep his job in return for signing the new contract.

    2. Re:What do you get in return? by jaxtherat · · Score: 2, Insightful

      Well sweetie, that counts as duress...

      --
      http://www.zombieapocalypse.tv/
    3. Re:What do you get in return? by renegadesx · · Score: 5, Insightful

      I'd sign it if they agreed to pay me for 6 months after employment, otherwise I would tell them to get stuffed

      --
      Make SELinux enforcing again!
  5. Not Enforceable in California (for the most part) by triclipse · · Score: 5, Informative
    California Business & Professions Code 16600 states:

    "Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void."

    The rest of the relevant chapter addresses mainly those instances where one sells an interest in a business. In those cases noncompetes are enforceable.

    California courts routinely void noncompetes under B&P 16600.

    --
    No Inflation Taxation without Representation
  6. Things to try by plover · · Score: 2, Insightful
    You obviously have two choices: sign it or don't. I'm guessing "don't" probably comes with the spectre of termination. But there are things you could try.

    You could modify the agreement by striking out the "or within six months thereafter" clauses and sign it. There's a chance that it'll be sent only to a paper-stamper who is responsible for checking signatures off a list, and he might not see your modification. Of course it's more likely your boss is on the hook for collecting signatures, and he'll note your changes. You could try convincing him that the agreement is unfair, and that your changes are just.

    You could try ignoring it. See if they follow through on their threats.

    You could talk to your coworkers and organize yourselves to collectively say "we're not signing this." If an entire group said "no" you'd scare the crap out of management. Of course you'd likely all be labeled "troublemakers" or "union organizers" and be lined up for rapid replacement.

    Or you could shut up and sign it. Unless you've got another job in your back pocket, the market's kind of thin these days.

    --
    John
  7. Depends where you live by stox · · Score: 4, Insightful

    If you lived in Illinois, these paragraphs would be completely null and void. I can't speak for other states.

    --
    "To those who are overly cautious, everything is impossible. "
  8. Just say no. by compumike · · Score: 2, Insightful

    Slavery is illegal in this country... and an agreement like this is essentially financial slavery.

    The idea that this kind of control over IP can extend beyond the scope of employment is, unfortunately, fairly typical. I think it's worth trying to fight. I haven't heard about trying to extend beyond the duration of employment, too -- that's just absurd.

    Maybe it's possible to ask for increased compensation -- say an extra six months -- in exchange? If they really think that the intellectual property you'll create is worth it, that seems to be a first attempt at fairness.

    In any case, in IT, are you really in the position to be creating that much intellectual property? Lots of companies are trying to shove agreements like this down employee's throats, without thinking about the consequences. Unfortunately, most people just sign blindly.

    It's a bit overused, but might this be reflective of the atmosphere of American consumerism? Nobody wants to create content anymore... we'd like to just consume media. I hate to say it, but I think this all comes full circle into the file sharing debate:

    People today don't sufficiently value intellectual property.

    This leads to the problem with pirating electronic media, but also seems to lead to the situation where people don't stand up and refuse restrictive employment contracts like this one.

    --
    Educational microcontroller kits for the digital generation.

  9. Sign it if they pay up. by Kenrod · · Score: 2, Insightful

    Figure out what the agreement is worth and ask them for compensation. If they want 6 months of your "inventions" after you leave employment, they need to pay you 6 months salary, or a reasonable portion thereof, up front.

    Since you didn't agree to this new contract when you were hired, you should have your pay adjusted accordingly.

    --
    Good heavens Miss Sakamoto - you're beautiful!
  10. Re:Yes, I Signed One by ozmanjusri · · Score: 2, Funny
    I was told that I was not to divulge the secrets of Microsoft Bob or Windows ME until the year 2050

    Understandable.

    They've distilled the usability of Bob and the stability of ME into Vista....

    --
    "I've got more toys than Teruhisa Kitahara."
  11. Re:Sure by lena_10326 · · Score: 4, Interesting

    They're paying you to come up with cool, neat, innovative tech. If you come up with something really sweet, they don't want you to leave, start your own company and get rich.
    That's one of the reasons I never offered my best ideas to my last employer. What's the point. Give them your idea and get nothing in return except for a lousy pat on the back. Meanwhile executive management profits heavily. I've seen it happen. You might as well just punch the clock and only work on your task list. Nothing more. Nothing less.

    Never give up an idea unless you will own a percentage, otherwise keep them to yourself and try to implement them at home in secret, and then launch your website/product/business the minute your non-compete expires.

    --
    Camping on quad since 1996.
  12. I got one and didn't sign it. by wrook · · Score: 5, Interesting

    One of the companies I used to work for tried to get me to sign an "updated" contract.

    I told them, "I already have a contract and I'm happy with it. There are termination measures in the contract, but I don't think any of the issues apply (gross incompetance, etc)."

    Legal freaked out. They told me I must sign the new contract or else my employment would end. I said, "The contract I am working under has no expiration date and I don't see any provisions for updating it. As I said, I'm happy with this contract, so unless you offer me large concessions I don't really feel it's in my best interest to sign another one".

    Legal freaked out again. They said, "Everyone has signed this contract. You are the last person. You must sign it."

    I asked, "Are you saying that you will fire me if I don't sign this contract?"

    "Well, no."

    "Good because I like the old contract better."

    End of story. Never heard from them again.

    1. Re:I got one and didn't sign it. by oxygen · · Score: 5, Insightful

      It's shocking how few people realize that this is an option. There may be consequences for your actions such as termination, but you do have the option to not sign it.

      I had the same thing happen to me a few years back. I had an NDA/non-compete dropped on my desk by the HR manager and I looked at it and handed it back to her and said no. She said I had to sign it, required, firings, I looked back and said Okay and put it in my trash.

      A few hours later my boss came over and asked why I didn't sign it. I explained my issues and after three rounds with legal, they came back with a very narrow agreement that I was willing to sign.

      Later on, I was talking with some other employees and happened to mention what happened and they were all shocked.

      --
      Why is it that its easier to write a huge comment here, but I still can't write the first paragraph of that english st
    2. Re:I got one and didn't sign it. by Anonymous Coward · · Score: 5, Funny

      I'll do you one better. My last job fired me a month ago for the neurotic reason of missing a meeting. Not an important meeting. Not even a one time meeting. Just a routine Friday morning meeting which never divulges any useful information what so ever and is pretty much a waste of an hour. Now that's not the amazing part.

      The amazing part is sitting there the Monday morning after the meeting listening to HR read me the termination letter. They've brought in the previous HR lady AND the company lawyer (which they don't routinely do) because they're scared of me. Mysterious powers of network admins, I guess. Then after reading me a specially written termination letter (this is a company with a 100%+ yearly turnover rate, so their typical letter is a form to save time) the HR lady has the following to say:

      "Typically, when we hire an employee, they sign a confidentiality agreement."

      "OK."

      "You don't have one in your employee file."

      I begin to smell where this is going, but due to sheer disbelief, I play dumb, "OK. Are we done?"

      "Could you please sign this one now?"

      Yep. They actually asked it. WHILE they were firing me. I didn't know which impressed me more... the amount of nerve it took them to tell her to ask me that, or the stupidity it would require to believe in a million years somebody might comply. "Uh, no?" I responded.

      Now at this point, the lady seems visibly shaken. The big wigs watching her are obviously not pleased that she couldn't work a miracle. "Is there uh... is there a particular reason why you don't uh... don't want to?"

      A million things run through my mind. Illegal things they've done, mostly. But I decide it's best not to let them know what I know and respond, "Beside the fact that you're asking me for a favor as you fire me? I just don't feel like signing anything right now."

      Still makes me laugh. I've never worked at a more neurotic, incompetent, worthless company in my entire life. Had a previous employer before the last one that tried to float a non-compete to all the employees after we were working there. We got together and all said "Nah, we don't like the terms. We're not signing." and they never asked again.

      But asking someone while you're firing them to sign a confidentiality agreement? Amazing.

  13. You can't force a free mind by Quadraginta · · Score: 5, Insightful

    I know a lot of people will advise you to consult a lawyer, but my advice, as one who has consulted lawyers far more often than I'd wish to have had, is not to.

    First of all, the law is not nearly as clear-cut as geeky programmer types think it is. As a rule, the law is roughly speaking some mash-up of what the legislature wrote, what the judge thinks ought to be so, and what a jury of random folks majoring in theater and journalism at the local community college think it ought to be. Hence a good lawyer is probably not going to be able to give you an precise and definitive answer on all your what-if scenarios. Instead, he'll probably agree with you on general grounds that the contract is evil, vicious, and you are a noble person dreadfully wronged blah blah (this is just advertising, an appeal to your vanity, so you won't forget him when you someday need a lawyer). If you press him on specifics, the most he's likely to do is tell you roughly how he would argue the case against the contract if he needed to, but he's unlikely to guarantee it will work.

    Secondly, aside from satisfying your injured pride, what would be the result of asking a lawyer and setting yourself back $500 or so? Suppose the lawyer agrees it's a smelly contract, and a court might rule this or that aspect unenforceable, if push came to shove? What are you going to do with this information? Go to your boss and say Ha! All your base are belong us! and he's just going to say Curses! Foiled again! and tear up the NDA, maybe give you a raise for showing initiative and helpfully pointing out the folly of the company's ways? I mean, as opposed to marking you down as a pain in the ass who needs to be shitcanned at the first opportunity, like maybe right now? Your feelings would probably be more effectively soothed if you spent that $500 buying pretty girls drinks in a club.

    Finally, if you just have enough mental discipline to keep your mouth shut when you need to, this doesn't matter anyway. Suppose you do have some kick-ass wonderful idea while you're working for this bunch, and you decide you want to take it elsewhere. All you need to do is not keep notes on your idea in your office (duh), not work on it using company computers and networks (duh), not talk boastfully about it around the water cooler -- this is the hard part -- and just generally keep your thoughts to yourself as long as you work there and for six months afterward. When your killer idea takes the world by storm it's going to be up to your former employers to prove in court that you had the idea eight months earlier, when you still worked for them. But without the evidence you've carefully avoided providing, they're screwed. They can't read your mind.

    As for the ethics involved: anyone who gives you a contract like that to sign has made their lack of morals completely clear. You owe them no consideration in return whatsoever. Indeed, if you used them to pay your rent while secretly working out your brilliant idea at home, they'd have only gotten what they deserve.

  14. Yup. It's doable. Just be polite and reasonable. by apankrat · · Score: 2, Insightful

    Yup. First, talk to a lawyer. This costs 30 min of his time, so it's not expensive.

    If he confirms that this is unenforcible, propagate that to the company and see what they have to say. If it's a company with multiple offices, they may in fact be asking to sign a paper drafted for another country. In which case they may back off and come up with a revised version. I've been through this and it does in fact work.

    If the lawyer says it's an OK as per local laws, ask company for a list of exemptions. Basically put together a list of current projects you are "working on" and have them attach this list. Again, be reasonable, explain the situation, and there's a good chance they will agree. Moreover, you will be talking to HR about this, and HR will be talking to legal dept. on your behalf. So do your best to win HR over first.

    The trick with an exemption list, which _typically_ works, is to (a) be vague with project description (b) avoid a code escrow

    If they don't get a copy of your current code tree, they won't ever be able to prove your existing version is not the one you have listed on an exemption list (excluding stupid mistakes, obviously).

    Again, I personally made this sort of an arrangement with a former employer, and I know a couple of other people who did the same with other employers. It's doable. Just be polite and reasonable.

    --
    3.243F6A8885A308D313
  15. Re:Sure by DustyShadow · · Score: 2, Insightful

    "As for the 6 months bit, it's not like you can get a patent in under 3 years.. "

    It says "invention" not "patent." Thus, it would apply to any patents granted later on said inventions even if it took 3 years to get that patent on the invention that you conceived within those 6 months.

  16. Re:Sure by DustyShadow · · Score: 2, Insightful

    "They're paying you to come up with cool, neat, innovative tech."

    Ok I agree with you but these companies should have a royalty program in place for its inventors. Otherwise there is simply no incentive to disclose inventions to the employer. I think IBM has a program like that. Any company that doesn't though is just ripping off its employees. If this guy's contract has a royalty provision then it might not be that bad really cause the company would pay for the patent process and if they do end up making a bunch of money off the invention then he gets a nice bonus. But like someone above said, we can't determine that without seeing the entire agreement.

  17. Re:Sure by QuantumG · · Score: 2, Interesting

    royalty program? Ha! Best you'll get is a filing bonus.. and maybe when the patent is granted you'll get a jacket with your name on it and get invited to a boring ass party where they try to encourage you to think up more pointless shit for them to patent.

    --
    How we know is more important than what we know.
  18. Before you sign an agmt.: What is your idea worth? by killmofasta · · Score: 4, Interesting

    BEFORE YOU SIGN AN AGREEMENT:
    ( obl: Ask a lawyer, not slashdot )

    If you are involved in solving any problems creatively,
    and have to do any SOP work for the company in question:

    1. Get a stamp, ( DATE: NAME: WITNESS, in boxes )
    2. Get a notebook, and STAMP EVERY PAGE.
    3. Write down EVERY IDEA YOU HAVE HAD THAT RELATES TO THEIR WORK.
    4. DOCUMENT EVERYTHING, AND WHEN YOU TALK TO THE LAWYER, have him initial all the pages. ( EVEN BLANK PAGES)
    5. have a copy made, and send one to yourself, and one to the relative nearist you. Make sure you completely cover the entire package with clear tape.

    Note: This is from the 'how to protect intellilectial property' book by Nolo press.

    Then when something comes up at your work, that you already have invented. You mearly state that its prior art, but you own the idea.

    I worked for a company that did the same thing. I had an agreement in place for non-competition. They asked for 7 years, I told them that they had aready agreed to others for 5, and a few instances where they were starting to get the swing of things 2 years. I told them I would sign for 1 year. I had heard that a lot of discussion went on behind the scenes, and after three days, they accepted the 1 year limit. They asked about 'Prior art' and I gave them the business card of the lawyer.

    When the eventual day came up that I had to tell them there was prior art, they screamed and yelled at me for about 1/2 hour, and had a vice-president come and give me the soft talk. I asked for 10,000 stock options. The Chairman of the board came and talked to me. I asked him for 10,000 stock options. He said no. I then told him 'Why is the founding and running of this company predicated on not paying people what they are worth?' "Ahh Eee Ohh? Can I get back to you on that?" And I told everyone at the monday morning meeting about it. Monday afternoon, the first person who had asked me for the agreement, said 'One year is acceptable, and we are granting you 7,500 stock options for use of these three ideas.' I ran into the VP years later. He thold me that they had a boardmeeting about this, and someone said, "Were screwed, if we dont do this, we will esaily loose most of the loyah staff. And if we do this, we are actually rewarding the best of the best. Its going to cost us a lot of money, but how much money are we going to make on this? Actually on all of it?"
    ( That is what happened Monday when they heard about the morning meeting! )

    Later on, two of the ideas turned out to be total duds, and were actually based upon other prior work. The one idea that paid off, got me $25,000 in cash, $2,500 for the patent application, and paid for the lawyer ten times over. I PATENT MY IDEAS NOW! THe patent hangs on the wall beside my degrees. Not worth much now, but it was fun.

    Another Patent I have seen hang on a wall is the Gene Amplification Patent owned by a guy at Chiron. He said "Its worth about 4.3 billion dollars over the life of the patent" He of course is a multi-multi-millionaire. Drives a toyota station wagon.

    You just have to judge... What is your idea really worth?
    ( HA! The Capatia is 'fr**tf*l' Best fortune cookie this month!

  19. My personal lawsuit experience with contracts by Anonymous Coward · · Score: 4, Insightful

    "Warner, never hesitate to sign a vague, badly drafted employment agreement."
    Yeah, legal fees galore.
    Look I recently dealt with a dickhead that screwed me out of ~$30k. And ~10 others out various amounts ranging from $10-$90k. We were all contractors. We all signed the same contracts. All of the contracts are mostly unenforceable.

    But here is the deal, if your opponent is irrational and has lots of money ... you lose even if you win.

    let me repeat that.
    If your opponent is irrational and has lots of money ... you lose even if you win.

    This guy was willing to play hundreds of thousands of dollars to make sure none of us collected a dime. He has a mental problem with admitting he is wrong. He would counter-sue for millions of dollars. Claims that were probably losers (you can never be 100% sure in litigation) but would have still cost $100k in attorney fees to defend. And it isn't just attorney fees it is your time. And in a profession where I bill by the hour, my time is my money.
    The $90k guy and the $20k guy sued (separately) and all of us waited to see what happened. The suits settled for a waiver of claims and no money. Basically the $90k, and more so the $20k guy, decided it wasn't worth risking their house to win. Plus even if they won it would have cost more in attorney fees (especially for the $20k guy) then they would have won.
    It is like in poker when you are forced to fold, despite your winning hand, because you don't have enough money to match the bet.

    This dickhead had enough money to piss away a good deal of it on making everyone miserable.

    If in the 6 year statute of limitations I win the lottery and can play on equal footing with him, I'll sue the bastard, but until then it isn't worth my trouble to be right.

    But keep this in mind if one party is rational and the other isn't and has money to afford to be irrational, the irrational party wins.
    If it is a big company they will either do (a) be rational, settle and walk away or (b) be irrational and fight forever because they have the money to do so.

  20. Go Ahead and Invent Anyway by Hoi+Polloi · · Score: 3, Funny

    I suggest you invent a new form of crack cocaine after leaving.

    --
    It is by the juice of the coffee bean that thoughts acquire speed, the teeth acquire stains. The stains become a warning
  21. It may backfire. by www.sorehands.com · · Score: 5, Interesting

    I had the same type of agreement when I was at MSI. When the workers comp. insurance turned me down -- claiming that the injury was not solely from work, I used that agreement to argue that all computer related work belongs to my employer, therefore work related.

  22. Re:From the perspective of an evil boss by belmolis · · Score: 2, Interesting

    In your situation requiring employees not to make use of your proprietary information if they leave would suffice to protect your legitimate interests. What possible justification could you have for laying claim to ideas that they have in areas unrelated to your business? The agreement presented to the poster is outrageously broad. I hope that yours isn't.

  23. Probably should sign it. by SanityInAnarchy · · Score: 2, Interesting

    But do cross out the parts you don't like.

    That way, they can never say you don't have a contract, aren't a full-time employee, you're just another cog in the system -- just in case there's some reason to be.

    But, when you leave, you'll have it on record that you signed a different contract, which, I imagine, is a lot more convincing than if there was no record at all.

    --
    Don't thank God, thank a doctor!
  24. Close by Anna+Merikin · · Score: 2, Informative

    Negotiate for what you want. You may find theirs is a defensive position, one that seeks to prevent making off with work they paid you for under the guise of it being "done on my own time."

    For example Paragraph B says the invention must be related to their company, its goals, etc. If you work in IT and devise a solar collector, it's yours.

    If you can't live with these kinds of binds at all, you may be unemployable.

  25. Re:I don't remember exactly which... by shmlco · · Score: 2, Informative

    ".. who then basically took the whole codebase and founded a competing company. ... But yeah, beyond term of employment is a bit of a problem."

    Look at the two clauses, and you can see the problem. If any ideas are "yours" the moment you quit, then the second you have a great idea you can simply quit.

    Most non-competes extend past the end of employment precisely to ward off such an event. They're also used for non-technical types likes salespeople in order to prevent them from wandering off with their entire client base. I've even seen some that extended for up to two years.

    --
    Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
  26. Re:Before you sign an agmt.: What is your idea wor by Soruk · · Score: 2, Funny

    Then you're doing something that is patently false. By writing "This page intentionally left blank" and initialling it, the page is no longer blank.

    --
    -- Soruk
  27. If it's software, make sure it uses GPL code by jamesh · · Score: 3, Insightful

    If it's software you are working on in your own time, make sure it includes GPL code. That at least would make any legal action they might like to take so difficult that they probably won't bother.

  28. Hewlett Packard made me do this by giafly · · Score: 2, Interesting

    ...in about 1980, so I resigned. I remember there was an idiotic clause that I had to tell them about every idea that I had, regardless of quality. I spent half-an-hour arguing with some legal drone that (a) they didn't need to know how I chose which toilet to use for a crap and (b) writing that sort of trivia down would take my entire day.

    I got my revenge by publishing the best things I invented in my two months at HP in a science fiction story.

    --
    Reduce, reuse, cycle
  29. You are also free to say NO! by Savage-Rabbit · · Score: 4, Interesting

    In both cases I can see the point of the employer - they do not want you to have advance internal knowledge of their product, quit, and go "sell" yourself to their main competitor (and that could very well happen given how much some software is worth, how much money several companies have, and that those companies aren't the most honest places on the planet). I can also see why a software company would feel they own your software if you are a software engineer, they are paying you to do that and there is no way you can totally separate yourself from the company. The way I see it, if you work for somebody and do coding in your spare time it is only reasonable that you don't contribute to products that compete with your employers product with your spare time activities and that your spare time activities don't get in the way of what you are doing at work. Other than that I feel that the company I work for has no business telling me what I can and cannot do in my spare time. Draconian broadly worded contracts are something I will refuse to sign unless I absolutely cannot find another job and even then I will bail on the company in question at the first possible opportunity. It is simply a matter what the law says and a matter of you deciding how much abuse you are willing to put up with.

    I was once asked to sign a new contract to replace my old one. This new contract contained very broadly worded IP ownership clauses that stated among other things:
    • The company owned any and all software I developed during the time they employed me.
    • The company forbad me to work on software projects for anybody else during the time they employed me.
    • If I quit my job company forbad me to go to work for a competitor for 6 months after I left them to protect them from "competition".

    I felt the first two demands were way to broadly worded. The first one seemed to extend to anything I coded in my spare time even if it didn't compete with my employer's products in any way shape or form. The second point was so broadly worded it forbad me to contribute to any Open Source projects at all even though the company it self was only to happy to use open source software. This is a brand of hypocrisy that really pisses me off. The last point was simply outrageous since seemed to clash with freedom of employment laws in my country, an EU Nation. At the time they presented me with the contract this hadn't been tested in court. I refused to sign the contact along with several other developers. Eventually the PHBs and their legal weasels came back with a revised contract. After much arguing and several revisions it stated something along the lines of the following:
    • The company owned any and all software I developed during the time they employed me but only If I developed it during working hours. What I did in my spare time was my own business as long as I didn't create or contribute to a competing product. Basically, since they were in the database business, I could develop anything I wanted in my spare time except database software.
    • The company forbad me to work on software projects for anybody else during the time they employed me but this was now mostly restricted to working for competitors. As long as I didn't contribute to competing products, Open Source or Proprietary, I could do what I wanted to. Contributing to Open Source projects was OK as long as it wasn't a competing product. If I wanted to take a second job for pay I had to get permission and of course it could not be a competing product.
    • If I quit my job the company forbad me to go to work for a competitor for 6 months after I left them. They didn't want to drop this so we let them keep it since this clause had been successfully challenged in court by the time we were done arguing and thus it had become basically meaningless.

    --
    Only to idiots, are orders laws.
    -- Henning von Tresckow
    1. Re:You are also free to say NO! by smallfries · · Score: 2, Interesting

      Was your EU Nation the UK by any chance? Employment laws here have drifted to your revised contract over the years (probably because there is some common EU employment law underneath them). The third clause has also been booted out by the courts here and so is meaningless, and the first two points have also been tested in court. Unless the employer can convince the court that the work is strongly related to the product that the employee worked on then they are shit out of luck.

      Answering sideways to your other reply - in the public sector at least redundancy law covers that clause. Unless you are booted from work for screwing up, if they let you go it's a redundancy. And then under EU law they can't fill that post for a certain length of time (1-2 years?). I believe the same law covers private firms as well.

      --
      Slashdot: where don knuth is an idiot because he cant grasp the awesome power of php
  30. What happens after you sign.... by Lost+Penguin · · Score: 2, Interesting

    It is way past time to update your resume.
    I was once asked to sign an "updated" non-compete; right before being laid-off.

    --
    I am the unwilling control for my Origin.
  31. non-comp. legal if you continue getting paid by xristo70 · · Score: 2, Informative

    hi stellar7,

    I've had year-long non-competition agreement with the Ferrari Formula 1 team when I left them at the beginning of 2005. Their reasoning (fear) behind it was that I could immediately take my knowledge of the race car design to another team. But after a year, with the speed of technology development, this design knowledge would be outdated.

    I did have discussions with lawyers if such a contract is legal or not. Well: in Europe is IS legal IF THEY CONTINUE PAYING YOU after leaving the company. Otherwise a judge in Europe will take about 20 second to review the case and say you are right. So Ferrari continued paying me for a year for not working for another F1 team (I had no restrictions for the rest). (I offered to sign a contract for life instead of 1 year, guaranteeing never to work again for a Formula 1 team, but unfortunately they did not accept my generous offer!!!!).

    Regularly with my work as a consultant customers try to make me sign such non-competition contracts. They always quickly drop it after I point out to them that I'd happyly sign it....if they pay me for it.

    The type of contract they are trying to make to sign doesn't sound legal at all to me.
    good luck! Chris

  32. Re:Sure by SatanicPuppy · · Score: 2, Insightful

    But...But...that's like stealing from the company! Ha. Of course, the last time I created a commercial product, they fired me, then inadvertently destroyed the code themselves before they could deploy it (they were worried I'd compiled timebombs into the binaries on my development server, so they wiped it). They also tried to sue me under a non-compete that I signed with my pseudonym "I won't sign this." Real bunch of winners. They went out of business not long after I left; I wish I could claim credit.

    Makes me glad I don't work in R&D. Most times, if I come up with something clever, I can deploy it, open source it, and take it with me to the next job. I don't have to worry about greedy management trying to steal it, because they're in no position to profit from it, except incidentally. I still have plenty of stress, but it's not that kind of stress.

    --
    ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  33. for the last time litteral meanings don't mater. by arthur5005 · · Score: 2, Insightful
    Dictionary.com

    --Usage note Traditionally, the masculine singular pronouns he1, his, and him have been used generically to refer to indefinite pronouns like anyone, everyone, and someone (Everyone who agrees should raise his right hand) and to singular nouns that can be applied to either sex (painter, parent, person, teacher, writer, etc.): Every writer knows that his first book is not likely to be a bestseller. This generic use is often criticized as sexist, although many speakers and writers continue the practice.

    .. you know. In cultural studies (and on a level of common sense), we say that it's not really important what the meaning of the word is literally, or how ever you take it to be. We'd rather like to talk about the meaning of that word in contextual maps; focusing on how people convey meaning when speaking to one another. Take for example, people from two different dialects trying to communicate for the first time, can be quite confusing when the meaning of the exact same word, in the exact same language has been changed completely.

    So it's one god damn word, the most basic pronoun in the English language, and I don't know about you, when I learned it, 20 some years ago, they told me it described someone with a penis. It's a pronoun to describe a male, that's how people understand it. If you disagree I'd advise you to go to a local strip club or red light, and refer to the 'working woman' by the male pronoun all night. Call her 'he'. Sometimes you might get lucky, but most of the time that should settle things. ;)
  34. Wise Move by Slashdot+Parent · · Score: 2, Insightful

    Every time this issue comes up, you get hundreds of armchair lawyers saying, "Oh, just sign it, it isn't enforceable, anyway."

    Well, the fact of the matter is you'll never know what is enforceable or not until you pay some lawyer $10,000.00 for the privilege of arguing it in front of a judge, and even then, you never know what will happen on any given day in court. The judge could enforce the agreement (you did, after all, sign it), he could modify it so it conforms with state law (well, you intended to agree to this, but it doesn't quite conform to state law, so here I'll modify it for you so it conforms... you're still on the hook for some, but not all, of what you agreed to), or he could toss it outright.

    But you never know what is going to happen, and especially if you get some compensation in return for signing the agreement, you should NOT count on a judge simply tossing it. Judges hate to give a party something for nothing, and if the judge gets it in his head that you signed the agreement with your fingers crossed (under the impression that the judge will someday invalidate the agreement), the judge will not be amused.

    So you did the right thing consulting a lawyer. Good luck with whatever you decide to do!

    --
    They don't grade fathers, but if your daughter's a stripper, you fucked up. --Chris Rock
  35. it may be ok to sign BS by bzipitidoo · · Score: 2, Insightful

    First off, I believe such a clause is unreasonable.

    IANAL, so check carefully first. But I wonder about signing anyway, knowing that the objectionable clauses are unenforceable, and then doing as you please. They do try to put such crap in there. "Yes I will hand over any invention I make for up to 6 months after this job ends", and then the instant it ends, you don't. They can't stop you. You may not even invent something related to their business in the time frame, so the whole issue may be moot. If you do invent something, you may be able to wait out the 6 months. And they may not even find out. If they find out and it hasn't been 6 months, they may do nothing. If they do something, it may be nothing more than empty threats, trying to scare something out of you, as they may know they have no ground to stand on. If they are deluded and actually follow through on threats to sue, then I don't know what will happen-- get thrown out of court right away? Lose horribly? Or, could they actually win?

    But, much better to refuse to sign. Don't want a reputation as someone who break contracts no matter how unconscionable. Really, be ready to walk. Demand the contract be changed, and if they refuse, walk. That should always be an option in such negotiations, and the other side has to know it is an option. Also they should know that's not a bluff, but that's harder. Some people are pretty pig-headed about that-- can't be convinced it's real and not a bluff until the trigger is pulled. (There are businesses that feel such "ability" is undesirable in their employees, and will then not want you around just for that. Some get really hung up on that "soft skill". Run, don't walk, away from those sorts.) But that this "should I sign" question is being asked at all suggests a difficult position-- you can't walk. This is also bad in other ways. The fact that you didn't immediately reject it might suggest to them that they can ride you hard, lean on you, walk all over you, and so it may be only a matter of time before another, worse demand is pushed.

    Myself, I tend to not like to even negotiate with a business that tries such crap, and am likely to walk right there depending on if I feel this is the way they do business, or this is just a rare stupid mistake on their part and they aren't normally like that. If it is the way they are, then they'll keep right on pushing, trying to slip something in, and you've always got to watch your back. I want to concentrate on technical problems, not sweat over how my employer is trying to cheat me this month and whether I missed it and am about to be taken, and I will just walk in that case. Bad enough wrestling with credit card companies, phone companies, cable companies, ISPs, health insurance providers, and such ilk. Sure don't need any more worries. It's not much of a job if there's no trust, and the relationship is adversarial.

    --
    Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
  36. Re:Forget to sign it by ApproachingLinux · · Score: 2, Interesting

    and if its multi-page, what stops them from replacing a page with strikeouts with a copy of the original page without strikeouts. or a different page altogether.