Non-compete Agreement

[darcie smith]

Is there someone willing to send me a copy of a non-compete agreement, if you use one? We're looking into writing our own, and if I don't get a response here, I will see what I can find on Google, but it would be nice to see one that's industry specific. Thanks in advance!

 

[Desk Jockey]

Darcie!

I wish I could help but we don't use one. Sorry

 

[darcie smith]

Thanks, Richard. You've always been a big help

 

[Desk Jockey]

https://www.siop.org/EEI_Conf and Noncomp.pdf

 

[ruff]

I was told that non compete agreements are rarely worth the ink they are printed with. As, if it prevents a person from making a living, they are not valid.
I think they are used more as s deterrent and a declaration of intent. As in: If you compete with me there will be blood .

 

[Ron K]

If written well by an attorney they can have some teeth. Talk to an attorney friend or your business attorney if you have one. I doubt a diy version could stick. You can't tell them not to work but you can discourage them in your town or county.

 

[Cleanworks]

They are not valid for your employees or subcontractors. They only work if you are buying someones business, it prevents them from hi-grading the customer list and starting up again. You probably need a lawyer to draft one for you.

 

[Hoody]

Darcie - I've been on both the employee and owner side of non-competes. You'll want to check with an attorney but there are a few things that owners mess up with non competes. Especially when they attempt to create their own. 1) Many owners set the terms of the non compete too unrealistic to be valid. For example the length and mile radius are the most common two factors. In my case 1 year would have been valid but my employer attempted a 3 year term and it was found to be excessive. 2) In some states non-competes can only be valid for managers or someone who has ownership within the company such as stock ownership if you become a corporation. 3) This is the most missed thing I've found. When you ask an employee to enter into a non-compete contract you have to have something the law calls "Consideration". In many states the consideration can be as simple as you're giving the employee employment in exchange that they won't pursue or market to your client base for other commercial purposes outside of your company's needs. However there are some states where employment isn't enough. Consider is just a fancy way of saying you're giving the employee something(a bribe if you will) and in exchange they will follow the terms of the contract. I do know that if employment is a valid form of consideration, that the length of employment can be a big factor in that. Many states it's 2 years or more of continued employment for it to be valid.

Like others have said you cannot stop a person from making a living and causing hardship but it can stop them from targeting your clients directly and if they do you have legal recourse.

 

[Ivan Turner]

Hi Darice,

There were some excellent points made on this subject. I had used non-competes for 25 years. To my recollection, I never had to attempt to enforce one. The truth is that I could never in good conscience prevent or attempt a man from wanting to provide for his family. I'm referring more to production classification employees. However, someone has already alluded to the prospect of having to defend your client base from a former employee that may want to coherce your clients to leaving. So for marketing and sales is a different story.

I have an agreement that I'd be happy to send to you if you are still looking. By the way, it was drafted by my the law firm that I had used for years and they specialize in labor law related issues. By the way, If I remember correctly the cost was in excess of $1,500 ivanturner61@yahoo.com

Either way, good luck!

Ivan

 

[darcie smith]

Thank you guys so much for your help!

 

[Wing It]

Non competes especially work if you have salesmen who go after clients that were yours or garnered on your dime.

 

[bob vawter]

nails in their driveway seven day a week works too......

 

[Desk Jockey]

nails in their driveway seven day a week works too......

That's approaching the situation with a certain amount of exuberance is it not?

 

[Spurlington]

nails in their driveway seven day a week works too......

Super glue the key holes are much more fun !!

 

[Willy P]

Here's 2.
Seriously, they generally aren't worth the paper they're printed on. You can't stop a person from earning a living.

 

[FB7777]

Non competes are a dick move

Focus on your own business and life and stop worrying about what another human being does to support their families

Plenty for everybody...

And even more for those that have the stones to take it for themselves

 

[ruff]

Here it goes and this is the final & ultimate No Compete form.
Please don't hesitate to use it.
It's the one that always worked for us:


"Frankly I don't think it will be a good idea for you to compete with us.
Why?
Because....Well.....lets just say: don't ask.