I would never sign on to a company that offered me such a restrictive non-compete, particularly with the financial remedies included. What's obvious from the excerpts you've posted is that the company has only its own interest at heart, and none whatsoever in maintaining a good employee-employer relationship. What's particularly irksome about this excerpt is the mention of termination for any reason. If the employee is laid off it is patently unfair to deny him the opportunity to receive other employment by restricting him from working with business entities their former employer may have had contact with. As for requiring a former employee to not recruit from within their previous company, that's fairly common. The $50K financial remedy is not, and with security being such a small space, if you were to move to another company, and have one of your previous co-workers follow, even w/o your assistance, your former company would likely be able to bully you into paying - or at least incurring a lot of attorneys fees. my two cents. -gabe On Sat, Aug 04, 2001 at 10:57:33AM -0700, John Starta wrote: > I have been offered a position with a professional service company that is > asking that I sign a non-compete agreement. Having spent the majority of my > career in large enterprise environments non-compete agreements are new to > me. This particular agreement seems particularly restrictive ... to the > point that I wonder whether I could legally find employment should we ever > part ways. I have included a couple excerpts below for reference. Is this a > common place in the professional services arena? > > jas > > >1. For a period of one (1) year commencing with the termination, for > >whatever reason, of my employment with the Company, Employee will not > >solicit, assist in the solicitation or accept professional services > >similar to those provided by the Company from a business entity for whom > >either the Company or Employee has performed services within the last year > >of Employee's employment with the Company. If, within one year commencing > >with the termination of Employee's employment of the company, Employee > >does solicit, assist in the solicitation or accept professional services > >similar to those provided by the Company with a business entity with whom > >either the Company or the Employee has performed professional services > >within the last year, employee agrees to compensate the Company, 50% of > >the revenue generated from that business entity for a period of one year, > >based on customer invoices. Payment of this amount will be due to the > >Company on a monthly basis 30 days after Consulting services are rendered. > > > >2. Further, Employee agrees that during the period of Employee's > >employment and for one (1) year after termination of employment, for > >whatever reason, Employee will not solicit and/or assist in the > >solicitation of any employees of the Company to leave the Company's > >employ. If Employee does solicit employees of the Company during > >Employee's period of employment or one year thereafter, Employee agrees to > >compensate the Company $50,000 to help offset costs to replace > >employee. Payment in full is due within three months of hiring solicited > >employee. -- Gabriel Coelho-Kostolny gabeat_private
This archive was generated by hypermail 2b30 : Tue Aug 07 2001 - 15:29:04 PDT