Category Archives: Noncompetes

Coyote traps at work – when to gnaw your arm off

Posted on July 30, 2015 | Leave a comment

Some mornings it just doesn’t seem worth it to gnaw through the leather straps. (Phillips)

Coyotes stuck in a trap have been known to gnaw their foot off to escape.  A lot of these three footed coyotes survive for years and do very well. Okay, they do well compared to coyotes that were killed by the trapper.

Scared to leave your job?  Nasty non compete?  Family responsibilities?  Too comfortable?

Are you really going to stay in that job until you retire no matter how you are treated?

If the company starts losing money is the president going to fire himself, or fire YOU? 

Do you have to shoot your boss to get a promotion?

Don’t leave just because you can.  If your job is fulfilling, pays well and gives you a chance to progress to where YOU want to go in your career, STAY.  If you have a history of job skipping, stay awhile even if you don’t like it there.  There are good reasons to stay in your current job.  Fear is not a good reason.

Yesterday I wrote about non competes.  If you are concerned about yours, talk to a lawyer who specializes in employment law.  Many non competes are not enforceable.  That means they are legally unfair or immoral.  You are not morally obligated to do something immoral.  It does not make sense to feel obligated to do what it is not legal to expect of you.

If you have a valid non compete, consider doing whatever you have to do to get out of it.  One good way is to go to your boss and say, “I want a new contract with a more limited non compete.”  Don’t threaten to quit, just ask him to reasonably limit the non compete.  If he says, “No,” you can always start looking for a job.  If he fires you for asking, check with your lawyer.  He may have just voided the non compete.  And last of all, he may realize you are upset and give you a raise or a promotion.

Even if you have to quit and commute 3 hours a day, it is better to quit now rather than later. Do you really think that in 3 years or 10 years you will have LESS obligations and lower expenses than you do now?  Slavery is illegal.  Don’t allow yourself to be a slave.

Don’t let fear paralyze you. Carpe diem. Seize the day.  Carpe jugulum. Grab the day by the throat and make life give you what you deserve.  You CAN change your life.

Something To Do Today

Like your job?  Tell your boss.

Want to leave?  Figure out how.  Don’t be chained to a life of low expectations.

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Later:                          Glass ceilings

The hours game

Confronting your boss

How to leave your job

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Posted in Noncompetes, Promotions, Quitting or Fired

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Non-compete agreement abuse

Posted on July 28, 2015 | Leave a comment

Nothing more completely baffles one who is full of trick and duplicity than straightforward and simple integrity in another. (Colton)

Non-competes

For a year Jim did a two hour commute-one way, every day.  What a horrible thought.  He did it to get out of a non-compete agreement.  Do you think he will ever sign another one?

Lawyers in Pennsylvania are expressly prohibited by law from having non-competes for lawyers.  It is unfair, they say, to do that to lawyers and their clients.  A lawyer leaving a law firm SHOULD be allowed to steal clients.  So why do non-competes apply to everyone else? Because lawyers are paid to write them.

There are reasons to sign a broadly applicable non-compete agreement:

  1. You will be trained from total ignorance to blinding expertise and will be paid lavishly with a guarantee of 1 year of pay after you are fired or quit.

Not a long list.  Is it?

Here’s a list reasons to sign a limited non-compete agreement:

  1. You will learn crucial trade secrets
  2. You might steal customers or employees
  3. You will receive some training and the costs need to be repaid

A simple non-compete clause is the most dangerous. You can be barred from every job in an industry or area if your contract only says, “You will not compete.” Make sure any contract you sign clearly states what specific things you are not allowed to do.  It should list:

  1. A reasonable period of time that you cannot compete (never more than a year)
  2. A precise group you are not allowed to work for or call on
  3. Specific jobs you cannot do for someone else
  4. A geographic area it applies to (within 35 or 50 miles of where you worked)

If you don’t like a contract, change it.  Cross out sections and write in the margins.  Initial the changes.  Handwritten changes on a contract take precedence over the typeset text.

Take control.  You want a job, not a prison.  You need freedom to take another job in order to make this one worthwhile.  Have the guts to change a contract that is too restrictive.  You’ll be surprised how often your changes are accepted.  If they are not accepted, leave.  Value your freedom.

Something To Do Today

Time to gossip.  Ask people you know or strangers you meet at bars or the gym about non-compete agreements.  Get them to tell you horror stories they have heard of.  You will be appalled.  It is an education you need.

 

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Later:

Coyote traps – when to gnaw off your arm

Glass ceilings

The hours game

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Posted in Negotiating, Noncompetes, Quitting or Fired

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Bizarre non-compete agreement

Posted on December 11, 2014 | Leave a comment

There is even a sandwich shop with a non-compete.  Seriously, are they going to sue an $8/hr worker for going to work at McDonald’s?  Other examples also included in this article.

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Negotiating Non-compete agreements

Posted on October 17, 2014 | Leave a comment

I just got upset with non-compete agreements again.  Here is what I have written on it before.  Good stuff.

How to negotiate a noncompete

Best:

When you are presented with a contract that has a non-compete agreement the most effective negotiation is to say, “My lawyer needs to look at this.”  Your lawyer always trumps their negotiator.  The problem is that they may assume you are not worth the hassle of lawyers and changing the contract.  That is what you need to decide.  For most situations, I suggest you try the “Very Good” approach.

Very Good:

Cross out and alter the parts of the non-compete paragraph that you don’t like, initial the changes, sign the contract and hand it back. Do NOT tell them what you are doing until you have finished and handed it back.  Then don’t say a word, not one word, until they start talking.  The HR person will turn green.  That is okay. They may accept it without comment.  This is the most commonly successful ploy I have seen.  What you have written on the agreement always takes precedence over what was printed.  Make sure you get a copy of what you signed to take home with you.

Often the person telling you that they can’t accept the contract actually does have the authority to accept your changes. Since you have already despoiled the pristine contract, and won’t be moved, they are under pressure.  At this point you can say, “If you cannot accept those reasonable changes to the non-compete clause, I will have to take this to my lawyer.  That may take a week or two.  Would you like me to consult my lawyer?”  That may be enough pressure to get them to just accept it.

Terrible:

Accept the assurances of the person you are talking to that they never enforce the non-competes.  If they never enforce them, then legally the court is likely to let you off the hook.  However, that will be 3 months after you left your job and your new employer won’t pay you a penny until you clean up the legal mess.

Conclusion

Don’t be pressured into a non-compete you don’t want to accept.  Negotiate.

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Ruling throws out some Noncompete’s in PA

Posted on June 13, 2014 | Leave a comment

if you are asked to sign a non-competition clause after you are hired. they have to give you a substantial raise, check, promotion, cash, or something valuable.  If not, you are free to go anywhere you want.

A court case in PA just confirmed that.  All the details are in this article.

Basically, if they threaten to take away your job and make you sign something saying that you waive the compensation, they have no contract.  The actually have to give you some compensation or they lose, no matter what they had you sign.

Make sure you check out the details.

If you want a general review of PA noncompete law, try this article..

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How to negotiate a fair non-compete clause

Posted on June 15, 2012 | Leave a comment

I was cursing non-competes again yesterday.  Non-competes are those contract clauses that can keep you from earning a living.  Here in PA, lawyers cannot legally be held to a non-compete.  The rest of the world can.

The ultimate good desired is better reached by free trade in ideas [and] the best test of truth is the power of the thought to get itself accepted in the competition of the market. (Oliver W. Holmes, dissent in Abrams vs US, 1919)

What a non-compete really did

This happened.  The perfect manager had accepted the job.  He planned with his new boss how they would take over the market.  He tendered his resignation and got ready to shake the world.  Then he and his new boss got a phone call.  It was from a lawyer at his old company, always bad news.  “If you go to work for the new company and work anywhere within 150 miles of our office, we will start by getting an injunction to shut you down.  Then it is going to get nasty.”  That was it.  The opportunity evaporated based on a non-compete clause.

I am told that in Tennessee, if you sign a non-compete, you better be willing to live by what you signed.  In California they say non-competes are rarely enforceable.  No matter where you are, it is better to change the non-compete before you sign an employment agreement rather than try to get out of it later.

I’m getting old and disagreeable.  I would only sign a non-compete that says,

“You are not allowed to help steal customers you worked with directly for one year.”

I would also demand this qualifier,

“If the company cuts my pay, rearranges my bonuses so I earn less, or fires me for anything besides dishonesty, I can work for anyone I choose.”

In reality, you will never see those clauses in a contract.   Too bad.  It would make signing the contract much easier.

Never be afraid to cross out the non-compete clause before you sign a contract.  It will give your hiring manager or the HR person a heart attack.  That’s a great way to start negotiations, seriously.  If you have any questions, cross it out and tell them you either have to cross it out or let your lawyer look at it.  That really is the way I would negotiate.  Their lawyer looked at it, why shouldn’t yours?

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Tomorrow:     Sand in the gears

Later:              A resume planner

The Heisenberg uncertainty principle

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$250,000 too proud

Posted on January 20, 2011 | Leave a comment

A cynic is not merely one who reads bitter lessons from the past, he is one who is prematurely disappointed in the future.  (Harris)

Mike’s expertise selling into FEMA was critical.  Their product was more than an idea, but not a proven solution.  Mike was already calling on FEMA contacts even though he wasn’t officially on payroll.  The feds wanted their product.  This would be a big win for everyone.

Mike had been unemployed for 8 months and was running out of money.  This was juicy.  If Mike quit or was fired the day after he started, he’d still get $250,000.  The commissions would double that. Still, he was worried he wouldn’t get everything he deserved.  The contract wasn’t tight enough.  What about bonuses in year 4?  He brought in the best lawyer he could find.  The company balked at his demands, his lack of flexibility.

Then the lawyers and the dragging negotiations wounded Mike’s pride.  A venture capitalist said the wrong thing.  The CEO didn’t want to completely get rid of the non-compete agreement since there was a one year severance guarantee.

Mike quit the negotiations. The product was cancelled.  The company was closed.

What hurt the most was that it took Mike six more months to get a different job.  That job paid half as much with no commissions or bonuses.  He had to clean out his savings accounts and sell his cars to survive.  Mike told me, “My pride cost me $250,000.   That was the best offer I ever had. What was I thinking?”

This was an extreme case.  The problem was pride.  When you know you are essential to a project, you want to be treated with respect.  Sometimes that respect kindles the flame of overarching pride.

The job market is really heating up.  I am seeing more examples of this destructive pride.  A manager once told me his policy is, “If two people are absolutely critical to a project and they disagree violently and refuse to compromise or go down one of the two paths, FIRE THEM BOTH.”

Don’t forget, even if you are irreplaceable, the project can be cancelled.  There are always alternatives for an employer.

Don’t let destructive pride make you expendable.

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Posted in Attitude, Focus, Noncompetes, Quitting or Fired

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Take this job and shove it – your view

Posted on November 12, 2010 | Leave a comment

Suicidal glory is the luxury of the irresponsible.  We’re not giving up.  We’re waiting for a better opportunity.  (Bujold)

Take this job and shove it — your view

“The non compete is never enforced.  I’m not worried if they find out where I am going.”

A very real guy I know said that to his new boss.  He went back and bragged to his old coworkers about the new job.

He got a phone call from his old company’s lawyer.  Guess what?  They are enforcing the non compete.  If he fought it, he very well might beat it.  But during the ensuing battle he couldn’t work. So he is staying.

What do you think his career path looks like now?

Resignation should always be done with a simple letter stating:

I appreciate the opportunity I have had to work for XYZ Company.  I am resigning my position effective <date>.

Don’t say where you are going.  Don’t brag to your coworkers.  Don’t even admit which state or industry you will be in.

No non compete clause in your contract?  You should resign the same way.

Why?

You may be accused of bringing trade secrets to the new employer.  They may not be able to stop you, but they can still cause you and your new company pain in the courts.

Resigning should always be done the same way.  Simply and quietly. Gloating is never a good idea.

Don’t quit today unless you already have a new job.  Then quit in a short professional letter of resignation. Practice avoiding questions about where you are going to work.

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Coyote traps – when to gnaw your arm off

Posted on November 5, 2010 | Leave a comment

Some mornings it just doesn’t seem worth it to gnaw through the leather straps. (Phillips)

Coyotes stuck in a trap have been known to gnaw their foot off to escape.  A lot of these three footed coyotes survive for years and do very well. Okay, they do well compared to coyotes that were killed by the trapper.

Scared to leave your job? Nasty non compete?  Family responsibilities?  Too comfortable?

Are you really going to stay in that job until you retire no matter how you are treated?

If the company starts losing money is the president going to fire himself, or fire YOU?

Do you have to shoot your boss to get a promotion?

Don’t leave just because you can.  If your job is fulfilling, pays well and gives you a chance to progress to where YOU want to go in your career, STAY.  If you have a history of job skipping, stay awhile even if you don’t like it there.  There are good reasons to stay in your current job.  Fear is not a good reason.

Yesterday I wrote about non competes.  If you are concerned about yours, talk to a lawyer who specializes in employment law.  Many non competes are not enforceable. That means they are legally unfair or immoral.  You are not morally obligated to do something immoral.  It does not make sense to feel obligated to do what is not legal to expect of you.

If you have a valid non compete, consider doing whatever you have to do to get out of it.  One good way is to go to your boss and say, “I want a new contract with a more limited non compete.”  Don’t threaten to quit, just ask him to reasonably limit the non compete.  If he says, “No,” you can always start looking for a job.  If he fires you for asking, check with your lawyer.  He may have just voided the non compete.  And last of all, he may realize you are upset and give you a raise or a promotion.

Even if you have to quit and commute 3 hours a day, it is better to quit now rather than later. Do you really think that in 3 years or 10 years you will have LESS obligations and lower expenses than you do now?  Slavery is illegal.  Don’t allow yourself to be a slave.

Don’t let fear paralyze you. Carpe diem. Seize the day.  Carpe jugulum. Grab the day by the throat and make life give you what you deserve.  You CAN change your life.

Something To Do Today

Like your job?  Tell your boss.

Want to leave?  Figure out how.  Don’t be chained to a life of low expectations.

Leave a comment

Posted in Noncompetes, Quitting or Fired

Tagged , , ,

Non competes – prisons without bars

Posted on November 4, 2010 | Leave a comment

Nothing more completely baffles one who is full of trick and duplicity than straightforward and simple integrity in another. (Colton)

For a year Jim did a two hour commute-one way, every day.  What a horrible thought.  He did it to get out of a non compete agreement. Do you think he will ever sign another one?

Lawyers in Pennsylvania are expressly prohibited by law from having non competes for lawyers.  Lawyers say it is unfair to do that to lawyers and their clients.  A lawyer leaving a law firm SHOULD be allowed to steal clients.  So why do non competes apply to everyone else?

There are reasons to sign a broadly applicable non compete agreement:

  1. You will be trained from total ignorance to blinding expertise and will be paid lavishly with a guarantee of 1 year of pay after you are fired or quit.

Not a long list.  Is it?

Here’s a list reasons to sign a limited non compete agreement:

  1. You will learn crucial trade secrets
  2. You might steal customers or employees
  3. You will receive some training and the costs need to be repaid

A simple non compete clause is the most dangerous.  You can be barred from every job in an industry or area if your contract only says, “You will not compete.” Make sure any contract you sign clearly states what specific things you are not allowed to do.  It should list:

  1. A reasonable period of time that you cannot compete (never more than a year)
  2. A precise group you are not allowed to work for or call on
  3. Specific jobs you cannot do for someone else
  4. A geographic area it applies to (within 35 or 50 miles of where you worked)

If you don’t like a contract, change it. Cross out sections and write in the margins.  Initial the changes.  Handwritten changes on a contract take precedence over the typeset text.

Take control. You want a job, not a prison.  You need freedom to take another job in order to make this one worthwhile.  Have the guts to change a contract that is too restrictive.  You will be surprised how often your changes are accepted.  If they are not accepted, leave.  Value your freedom.

Time to gossip. Ask people you know or strangers you meet at bars or the gym about non compete agreements.  Get them to tell you horror stories they have heard of.  You will be appalled.  It is an education you need.

Leave a comment

Posted in Noncompetes

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