Non-Compete Agreements
I am finally back in the blogging world! After a (too) long break due to extensive travel, I realized that not only have I neglected my blog, I have a lot to say. So, I will start with non-compete agreements.
I don’t like non-compete agreements.
While I understand the premise behind them, I find them to be controlling, restrictive and detrimental to a person’s professional growth. Companies come and go, they grow and shrink- especially in technology (and, well, banking these days). Using the threat of not being able to get a job in the same industry to retain an employee is the worst kind of retention.
In addition, many non-competes are written so broadly, it is almost impossible to figure out what kind of job with what kind of company is possible. And while very broad non-competes are generally thrown out in some states, the fact a person would have to sue (and pay for the suit) to find a comparable job is astounding. And then there is the idea of enforcing a non-compete with a laid off employee. I don’t get it.
While I am not in favor of non-competes in general, I do understand and appreciate the need to protect a company’s intellectual property. There are other ways to protect the information, and there are ways to write a non-compete that doesn’t prevent a person from making a living doing what they do best in a place they can grow, enjoy their work and contribute to the company’s success (assuming that is not with their current company).
September 11th, 2008 at 12:39 pm
Melina —
Do you have any examples of “ways to write a non-compete that doesn’t prevent a person from making a living doing what they do best in a place they can grow, enjoy their work and contribute to the company’s success (assuming that is not with their current company)”?
September 22nd, 2008 at 11:29 am
Some ideas around this are:
Non-competes that are specific instead of vague and all-encompassing.
Restricting a former employee from contacting current customers for a period of time.
Writing a very solid Proprietary Inventions/Assignments Agreements for all employees when they start.
The main things a company wants to protect are its IP and customers. Making sure an employe understands and legally acknowledges the rights of the company to protect these assets instead of preventing them from working in the same field is much more reasonable.
Again, geography plays a huge role in the ability to use and uphold non-competes. And- in an economy moving towards high unemployment, I do wonder if the states who generally uphold them will continue to do so.
-Melina