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2004/11/18, 02:15 PM
My boss just had my husband sign a contract saying that should he ever leave the company, he can't work for another carpet cleaning company for 3 years unless it is 100 miles from our current location. My boss had all of the guys sign this and told them that if they didn't sign it, then they would be working. Is this legal, cause it sure doesn't sound like it.
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2004/11/18, 02:30 PM
I know that non-competes are legal (and widely used in the fitness industry) while employed; but it's kind of difficult to see how that one could stay legitimate after your husband leaves the company.....
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Michael
Trample the weak; hurdle the dead!
Chaos, Panic, Disorder.... Yes, my work here is done!
rev8ball@freetrainers.com
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2004/11/18, 03:04 PM
Oops..I meant that if they didn't sign it, they wouldn't be working. So in my opinion forcing them to sign it. Just doesn't sound right to me.
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2004/11/18, 03:18 PM
Yes, it's legal and binding specially if they signed it.
My dh has worked with having to sign similar contracts since he writes computer software, it's called a non compete clause. For example it prevents people from taking all the talent and opening another shop next door and stealing all the customers, etc or taking it to another business.
According to my dh Microsoft recently filed a lawsuit against 3 former employees for doing this.
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Damselfly
Quit being a sheep, they only get led to slaughter
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2004/11/18, 03:23 PM
I understand the premise, but is it legal for him to force them to sign it by saying if you don't sign it you don't work? They didn't give him time to have anyone look at it, or really even to read it. The giving of the paperwork,explination and signing took all of 5 minutes. My husband didn't have time to process what it meant. And then, what happens if he should get fired for some odd reason, he wouldn't be able to work for another carpet cleaning company for 3 years, so what would he do for work??
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2004/11/18, 03:30 PM
Non-compete agreements are legal and pretty common and are frequently a condition of employment or continued employment.
What it really stipulates is that if you leave that employer, you personally cannot compete with him/her, as in starting your own business doing the same thing.
What is does not stipulate is that you can't go to work for someone else doing the same thing. That's called restraint of trade and it IS against the law.
There are several ways to work around the non-compete agreement, but if you are concerned about being employed in the same type of work for a different company, the non-compete isn't relevant and won't adversly affect your ability to continue in the same line of work.
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Anni
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Hard work must have killed somebody
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2004/11/18, 03:35 PM
Thank you very much Anni. That makes me feel much better!
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2004/11/19, 03:32 PM
Ok, I was just given one to sign as well, and here is what it specifically says,"employee shall not own, manage, operate, cunsult, or be employed in a buisiness similar to the present company for 3 years" To me, the "or be employed" part would be restraint of trade, or am I reading this wrong??
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2004/11/19, 05:18 PM
Cristal you can have your lawyer look at, but it doesn't sound enforceable. Do some research on the internet, make sure you are looking at US law. My ex husband and I worked under noncompete agreements for years.
No court is going to say that it's necessary or for the good of the community for anyone to be kept from doing the only thing they know how to do to support themselves. It isn't going to happen. It's also not going to happen that a carpet cleaning company has such intense trade secrets that it or the community would be harmed if you went to work for someone else. Check it out with a lawyer, I'm sure they will tell you that the agreement isn't enforceable. Good luck!
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Anni
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Hard work must have killed somebody
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2004/11/21, 11:39 AM
In most states, existing employees must be given something in exchange for signing the non-compete (raise, promotion, etc.) as opposed to new hires being required to sign it as a job requirement. I would check with a lawyer for laws in your state/area. Also, usually non-competes have to do with the use of confidential infomation/property being used to directly compete against a past employer. Examples may be customer lists, pricing structure, marketing plans, financial statements, etc. Most courts will not enforce it to disallow someone to work within thier trade. Again, check with a lawyer though, because I am not one. Hope that helps.
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2004/11/26, 05:41 PM
cristal..such agreements are widely used...
however
there's has to be what's called 'reasonableness' to it...
so the non-compete clause has to be only as confining as it needs to be...I would find a good lawyer and have a consultation...very often such contracts are not honored because they are found to be unreasonable in
either having the person not being able to work for competitors without a good reason(is your husband going to be exposed to trade secrets? things he can't discover on his own through training or working in the industry(clientele lists)...), also it has to be a reasonable area of exclusion...100 miles sounds unreasonable..so I have a feeling such contract is voidable...
also more than likely the court will allow your husband to work for competitors and specifically bar him from using certain trade secrets which the current company can prove he discovered while working at this job
such contracts are often used as scare tactics...so beware...
but like i said, consult a good lawyer...
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