I recently had a good friend of mine whom I had went to college with and worked with for 6 years leave my company and buy out a local competitor whom I had turned down a buyout from three days prior. I didn't have a non compete contract with him because of our background. This situation has caused me to enforce a non compete with all my employees and I was wondering if any had some example I could look at that you have found to be concrete but reasonable. Thank you for your time. Charles
This is a tough situation. I turned down a job several years ago, one being the non-compete clause. I could not see how a former employer could basically take away my right to earn a living in my chosen profession/career. I would find it difficult to work for someone that would enforce that type of stipulation as a condition of employment.
I have to agree with GJH, you had better check with your attorney. You may possibly be opening a can of worms.
There are many factors when trying to enforce a non-compete agreement after the separation of an employee with your company. It may seem cruel to the employee but it is there to protect your business and the security of your employed employees from disgruntle employees. The non-compete should be written to be within a reasonable radius from your home base (i.e. 50 miles max.). If you, as the employer, perminently terminate his/her employment the agreement must be null and void. The objective of this agreement must be REASONABLE for the new employee. The time period of this non-compete clause cannot be forever either (i.e. 3 years max). The non-compete should be intertwined with non-solicitation of your clients during their employment unless with your written consent. The non-compete agreement is difficult to hold someone to, even when signed by the employee but if its REASONABLE then it could be made iron clad.
I honestly started giving this agreement out when we hired our first employee and as time passed we decided to stop doing so. We have grown and specialized in construction surveying and at this point in my life I welcome competition because it is what drives my company to greater things.
You will find two types of employees, one who is content with working that 8 hour shift and going home and one that wants to shine and be a leader. The leaders are the ones you will need to identify and help guide them to the top because if you dont they will go off on their own. You'll never have to worry about competition with the 8 hour shift employee but the leader, take them on and utilize them correctly and they will not seek other avenues.
Agree with the other points and would offer this when you speak to an attorney. What are you offering in return to sign a non-compet? Signing as a requirement of basic employment is likley not enforceable but someone in a bonus / salary position might be but you'd have to offer some reward for signing such. Review it carefully so it is not deemed cohersion.
