Tag Archives: non-compete

How to resign your job – part 1

“The non compete clause 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 clause.  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 pway_out-710184_640_pixabayath 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.

What if there is not a 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.

Something To Do Today

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.

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

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Later:  How to resign – Part 2

A successful email

The guy who invented running died

I make the milk every morning

Propagating blueberries guerilla style

Great ideas are a dime a dozen

Coyote traps at work – when to gnaw your arm off

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

Non-compete agreement abuse

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

How to negotiate a fair non-compete clause

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