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Started By
Message
Professional non-compete clauses
Posted on 1/4/24 at 6:24 am
Posted on 1/4/24 at 6:24 am
Anybody ever challenge or violate their non-compete with their company?
Everyone talks about their jobs a lot. I just thought of a situation a little over 20 years ago when I was working in BR.
We had a female employee who left us, and never made any secret about her intention to violate her non-compete. It was pretty clear and straightforward language in her contract. We were initially kind of up in arms about it. We were gonna show her not to mess with us. Our attorneys, however, advised us not to pursue the matter. Think of how it would look, they said, our corporation suing to prevent a single mother from pursuing her profession and make a living in her city of residence. They told us it would cost a lot of money to prosecute, she would whip up sympathy and public opinion on her side, and we might end up winning, but maybe not. They advised us it just wasn't worth it.
So we let it go and did not pursue, and she left us one day and the next day showed up in the same place working for a competitor. Some of our people would talk to her and say hi, and some resented the hell out of her.
I didn't particularly care; we got along well and she was kind of hot and I didn't see where it ever really hurt us very much. And I was starting to think about leaving myself. We did have a one or two others do the same thing, and then the situation kind of stabilized and everybody moved on.
What's your non-compete story? Conventional wisdom from most people I know (mostly non-attorneys) are that non-competes are very difficult to enforce these days. This was my only experience.
Everyone talks about their jobs a lot. I just thought of a situation a little over 20 years ago when I was working in BR.
We had a female employee who left us, and never made any secret about her intention to violate her non-compete. It was pretty clear and straightforward language in her contract. We were initially kind of up in arms about it. We were gonna show her not to mess with us. Our attorneys, however, advised us not to pursue the matter. Think of how it would look, they said, our corporation suing to prevent a single mother from pursuing her profession and make a living in her city of residence. They told us it would cost a lot of money to prosecute, she would whip up sympathy and public opinion on her side, and we might end up winning, but maybe not. They advised us it just wasn't worth it.
So we let it go and did not pursue, and she left us one day and the next day showed up in the same place working for a competitor. Some of our people would talk to her and say hi, and some resented the hell out of her.
I didn't particularly care; we got along well and she was kind of hot and I didn't see where it ever really hurt us very much. And I was starting to think about leaving myself. We did have a one or two others do the same thing, and then the situation kind of stabilized and everybody moved on.
What's your non-compete story? Conventional wisdom from most people I know (mostly non-attorneys) are that non-competes are very difficult to enforce these days. This was my only experience.
43
Posted on 1/4/24 at 6:26 am to GasMan
I had a reply, but it couldn't compete with yours 
Posted on 1/4/24 at 6:28 am to GasMan
Contracts are made to be broken.
Posted on 1/4/24 at 6:29 am to GasMan
If you try to enforce one, you better be trying to protect something more than just competition.
Posted on 1/4/24 at 6:29 am to GasMan
Can employees demand extra pay for these clauses?
Seems like if they are preventing employees from opportunity, they should provide much extra.
Seems like if they are preventing employees from opportunity, they should provide much extra.
Posted on 1/4/24 at 6:29 am to GasMan
I broke one and received two cease and desist letters from the old employer. Then the new employer fired one back basically telling them to frick off, it was glorious. They don't work in most states, you have the right to work. In my case, I had no intentions of going after old customers.
This post was edited on 1/4/24 at 6:31 am
Posted on 1/4/24 at 6:30 am to GasMan
From my understanding, they aren't enforceable, at least in Louisiana. A company can protect its data, which is protectable, but a former company cannot prevent a person from earning a living.
Posted on 1/4/24 at 6:33 am to Will Cover
quote:
From my understanding, they aren't enforceable, at least in Louisiana. A company can protect its data, which is protectable, but a former company cannot prevent a person from earning a living.
Yep.
Company might have a chance if it's narrow and reasonable, and even then it will cost more to enforce than it's worth.
Posted on 1/4/24 at 6:35 am to Will Cover
In Louisiana, last I checked, they can be enforceable but you have to specifically enumerate the parishes it applies to. There was a move a few years ago to eliminate them for physicians but after a lot of political pressure it died in committee. The FTC is more than likely going to rule them per se illegal in a few months which will set off a flurry of lawsuits.
Posted on 1/4/24 at 6:39 am to GasMan
Everyone spooges in their pants at the thought of playing Perry Mason until he really has to.
This post was edited on 1/4/24 at 7:52 am
Posted on 1/4/24 at 6:43 am to GasMan
We are a sales organization and know that non-competes are pretty unenforceable.
We just a have a document you sign saying where you won’t take any documentation about our CRM or download it with you as you go and have a gentleman’s agreement about not contacting customers for 6 months if headed to a competitor.
Hasn’t been an issue so far, but we’re a smal network sales company and 60% of the company are related. Most everybody who has left or been fired didn’t stay in the field.
I’m a sales engineer so me leaving would probably be the only thing that triggered something like this.
We just a have a document you sign saying where you won’t take any documentation about our CRM or download it with you as you go and have a gentleman’s agreement about not contacting customers for 6 months if headed to a competitor.
Hasn’t been an issue so far, but we’re a smal network sales company and 60% of the company are related. Most everybody who has left or been fired didn’t stay in the field.
I’m a sales engineer so me leaving would probably be the only thing that triggered something like this.
Posted on 1/4/24 at 6:44 am to Will Cover
quote:
From my understanding, they aren't enforceable, at least in Louisiana. A company can protect its data, which is protectable, but a former company cannot prevent a person from earning a living.
100% incorrect.
They are certainly enforceable in Louisiana, and you can get your arse sued for attorney fees and court costs if you break one. They have to be drawn up correctly, but if they are, they are good to go. Best consult an employment lawyer who knows their shite before breaching one.
Posted on 1/4/24 at 6:46 am to 3nOut
quote:
not contacting customers for 6 months if headed to a competitor.
That's reasonable - short time span and applies only to existing business relationships.
Posted on 1/4/24 at 6:55 am to Will Cover
quote:
From my understanding, they aren't enforceable, at least in Louisiana
Negative.
The requirements are strict and the clause must be pretty specific, but they absolutely can be and are enforced in Louisiana
Posted on 1/4/24 at 6:59 am to Will Cover
quote:
From my understanding, they aren't enforceable, at least in Louisiana
100% wrong
There are some strict requirements that fact contract must have, and I believe they're still a debate about whether or not a violating provision can be severed, but assuming the non-compete meets the requirements of the law they are very enforceable in Louisiana
Posted on 1/4/24 at 7:03 am to GasMan
I have a friend that has her own pediatric office, she hired another pediatrician, signed non-compete with stipulations surrounding mile radius. The employee left, took job that violated clause radius and case is now in litigation.
Posted on 1/4/24 at 7:16 am to Dragula
quote:We have our own enforceable rules here sir.
I have a friend that has her own pediatric office
Pics of her, for contextual purposes, amongst others….
Posted on 1/4/24 at 7:18 am to Will Cover
quote:
aren't enforceable, at least in Louisiana.
I've always heard that, but when I switched companies the company I moved to didn't want to touch it. Luckily we found a way around it.
Posted on 1/4/24 at 7:27 am to GasMan
I guess it depends on the field and location but I’ve always wondered how your old employer knows where you’re moving to? Do you tell them? I could change jobs tomorrow and my current company would have zero clue where I was working.
We have a non-compete but it’s not specific enough to be relevant in the event that I change companies. And how it’s written really only targets one of our competitors.
We have a non-compete but it’s not specific enough to be relevant in the event that I change companies. And how it’s written really only targets one of our competitors.
Posted on 1/4/24 at 7:30 am to GasMan
quote:
Some of our people would talk to her and say hi, and some resented the hell out of her.
I don't see how/why anyone else but the owner of the company would care about this.. Imagine being so wrapped up in your head about work that you're mad someone went and worked for another company, like you'd rather them be unemployed than work for someone else. Seems rather silly. I love my job, but I couldn't care less if a coworker went and worked for a competitor- if they are bettering their life, then good for them
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