Steve, the non-compete was between businesses, not the business and an employee, and that is an anti-trust violation on its face.
Actually a non-disclosure is a safer clause for businesses than a non-compete, and more apt to stand up in court. I did that as a matter of normal business, i.e. I didn’t discuss my clients with other people. That is a holdover from my military and law enforcement days.
Non-competes don’t really work very well because the best people usually won’t agree to them, and those who do agree, you really want working for the competition.
]]>The business owner wanted him to sign a fairly long-term non-compete clause covering just about every other place in the greater Houston area that sold futons… about eight org’s, if I remember right.
My friend objected, on two grounds:
One, he already had independent experience as a futon salesman, acquired on other jobs unrelated to the one he was applying for. He knew the market; he knew the products… from his own independent experience.
Two, the business owner was effectively trying to prevent his working in the field (other than for her) over a large geographical area and for a period of years.
The owner was unrepentant. My friend really needed the job, and signed the agreement. He left for another job… not selling futons… as soon as he reasonably could.
Eventually he went to law school, and discovered that such a clause would probably not stand up in court, as it is “unconscionable” to foreclose someone’s other livelihood options for so long. But there are some serious a$$holes out there among employers.
Me? I’ve signed some, in cases where I was confident I would not be affected; I’ve refused others… and the contract as well… when I thought they were too draconian. Win some, lose some… I don’t doubt they found someone to take the contracts.
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