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I'm recent college grad in a tech field looking for a job. I was just wondering, to all those who may be familiar, how common is a non-compete contract upon hire? Someone warned me against these today and I am trying to get a feel for how they may be. For example, I would be cautious about signing something that would prevent me from working anywhere in the same industry for x amount of years.
While I am not sure about how common it is in Tech, it is very common in sales. The thing to check on though is whether they are even enforceable in your state. In many states they are not, or they have to provide you additional compensation for having a non compete. That is one reason insurance companies will still pay out their sales people for a certain term after they leave, that way if someone was to join another company and try to take their client with them they would be open for a lawsuit.
In general any contract you sign that unreasonably hinders your employment will be frowned upon by the courts if challenged and are probably unenforcable.
Doesn't the BIG airplane company in the USA do it also? Also, seems I remember a Non-Compete usage with prescription drug companys a few years back. Don't know if it still exists. Guess it could serve the purpose of maintaining prices, trade and manufacturing data, costs, and being more able to compete with another, or just plain simply do away with a little guy! Tis' life.
It's like a pimp clause. It's common for consulting firms, folks who make money placing you to work on client sites, where you can be converted or be pirated.
It's common but read it carefully. Saying that you won't work a second job for a competitor is reasonable. Saying that if you leave you won't take customers or coworkers with you is reasonable. Saying that if you leave you won't work in the industry for x years is complete nonsense.
They're not too common outside of certain fields (usually the higher paying fields). Just make sure you read very carefully. If you sign a Non-compete without understanding it, there's a good chance you'll have shot yourself in the foot.
Really depends on the state. Here in Arizona someone fought a non-compete contract all the way to the state supreme court and the court decided in favor of the employee. The way some employers have gotten around it is to also add an intellectual property clause to a contract. So anything (clients, business practices, pricing, etc...) you learn on the job you are not allowed to use someplace else. Typically only enforced for sales people from what I have seen.
My husband signed one for a company that repairs wheels on cars. Basically "we're teaching you the process" so if you quit you can't take that knowledge and use it within a certain geographical area for 2 years. I think it's a bogus contract, who doesn't "learn" or "train" on the job? Can you imagine the lawsuits lol? Also, his boss promised XX% of whatever he does in repairs and he already went back on that original verbal agreement for an extra two weeks to "train" him longer which really meant I want to make the money and keep paying you $10 an hour. He's making the percentage now but now his boss is saying he's making too much money...seriously...what a tool.
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