Just because they are non-enforceable doesn't mean they have no effect. The COO of one of past employers was offered a job at a competitor shortly after he was fired. When the new company heard of his non-compete clause and the intent of the old company to enforce it, they withdrew their offer.
Massachusetts Governor Announces Plan to Abolish Noncompetes
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Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#12Non-competes are anti-business, anti-innovation and feudal. I have never signed one. I can't tell you how many times I have been asked to sign one that locks up your skills, which you are bringing to the company that they might not have yet, solely for them for years even though the project might only be 3-6 months. I applaud this effort immensely in MA, there is no place for non-competes in the US. It is entirely an…
Non-competes are very much pro-business, in that they weaken the power of labor.
Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#13Limited non-compete agreements have value to startups. It's not unreasonable to want to protect the company's intellectual property, business plans, product roadmap, marketing strategy, etc. from someone who comes in, works for six months, and leaves to start a competitor. Certainly large companies are abusing these agreements. However, so long as the non-compete is agreed at the time of hiring, is restricted to a ye…
> Limited non-compete agreements have value to startups.
Perhaps, but I often get the impression that startups think that they've got some kind of valuable secret methodology that is leagues better than everyone else. I feel that this is a really silly notion. Your startup is not a special snowflake. In fact, it's very likely to end in failure. It's the game we all play as entrepreneurs.
Success is largely determined by talent, excellent execution, a clear vision/direction, and strong leadership at the helm. These aren't really trade secrets, it's just hard work, focus, and even some luck.
Seeing a non-compete at a startup says to me that the founders are worrying about silly stuff like this instead of pushing forward into excellence.
Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#14Good idea. I would like to see this in my state.
Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#15I've been asked to sign a post-employment non-compete agreement several times. I never have, because I ask for a simple stipulation: for the length of time you don't want me to work in this field, you need to pay me the same salary. Everyone agrees that this is fair, and then never mentions the non-compete agreement again.
Czech republic and some other EU country actually have this in law. If employee with non-compete clause loses his job, employer has to pay his salary in full for duration of non compete. There are some exceptions such gross misconduct, voluntary redundancy etc..
Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#16Non-competes are anti-business, anti-innovation and feudal. I have never signed one. I can't tell you how many times I have been asked to sign one that locks up your skills, which you are bringing to the company that they might not have yet, solely for them for years even though the project might only be 3-6 months. I applaud this effort immensely in MA, there is no place for non-competes in the US. It is entirely an…
Non-competes are very much pro-business, in that they weaken the power of labor.
Small businesses, contractors, freelancers, and more who are asked to sign these are very much businesses and it is very anti-business to them.
It is relative, if you are big and established they are good, if you are small/medium (where most innovation and eventual businesses comes from) then they are bad.
It is anti fair business, but in a monopolistic/feudal/plutocratic type system it might be pro-business to own skilled people (anti-poaching agreements are also pro-business in that view). In a libertarian and free market sense it is anti-business when viewed from the aspect of an individual/small/mid company.
I guess its safer to say non-competes are pro big business and anti small business / anti innovation at least.
Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#17Just because they are non-enforceable doesn't mean they have no effect. The COO of one of past employers was offered a job at a competitor shortly after he was fired. When the new company heard of his non-compete clause and the intent of the old company to enforce it, they withdrew their offer.
They could conceivably be liable for interference. A previous employer of mine had that problem.
Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#18Perhaps of interest is that non-competes are unenforceable against lawyers. There are many reasons but the prevailing reasons are that a non-competes against lawyers interrupt a client's right to hire counsel of their choice and otherwise significantly limit access to the Courts, both are constitutionally protected rights.
Enforcement of non-competes in any jurisdiction is a complex analysis, where the scope, term and geographic restriction must be applied to a given job/industry. A general problem (from both employer/employee perspectives) is that people assume because they exist they are enforceable, it would lead me to believe people would be surprised how often, when challenged, they are found to to unenforceable.
Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#19Just because they are non-enforceable doesn't mean they have no effect. The COO of one of past employers was offered a job at a competitor shortly after he was fired. When the new company heard of his non-compete clause and the intent of the old company to enforce it, they withdrew their offer.
They could conceivably be liable for interference. A previous employer of mine had that problem.
This was a company with under 50 employees who had a full time general counsel. They had no lines of business that were remotely related to law.
Maybe that's not abnormal but I had never, and have never since, seen a small company who didn't outsource their GC needs.
Re: Massachusetts Governor Announces Plan to Abolish Noncompetes
#20Limited non-compete agreements have value to startups. It's not unreasonable to want to protect the company's intellectual property, business plans, product roadmap, marketing strategy, etc. from someone who comes in, works for six months, and leaves to start a competitor. Certainly large companies are abusing these agreements. However, so long as the non-compete is agreed at the time of hiring, is restricted to a ye…
Agreed 100%. It may not be fully enforceable but it certainly helps startups to protect their IPs to some extent.