Question for software industry folks
This is a question for those of you who work in the software industry.
Is it common practice to sign a non-competition agreement as a term of employment?
i.e. - You're not supposed to do business with competitors while you're an employee and even afterwards for a determined period?
Is it common practice to sign a non-competition agreement as a term of employment?
i.e. - You're not supposed to do business with competitors while you're an employee and even afterwards for a determined period?
Quote:
PersonX agrees that during the Term of Employment and for a period of two years after the termination of such employment, PersonX will not, directly or indirectly, within the United States (i) contact, solicit, provide services to, or engage in any business transaction with (whether for himself or for any person he is employed by or associated with) any person who is or was a customer of Employer during the Term of Employment or during the twelve month period prior to PersonX's employment hereunder, or (ii) engage in any business activities in competition with Employer.
PersonX agrees that during the Term of Employment and for a period of two years after the termination of such employment, PersonX will not, directly or indirectly, within the United States (i) contact, solicit, provide services to, or engage in any business transaction with (whether for himself or for any person he is employed by or associated with) any person who is or was a customer of Employer during the Term of Employment or during the twelve month period prior to PersonX's employment hereunder, or (ii) engage in any business activities in competition with Employer.
Comments
Originally posted by groverat
This is a question for those of you who work in the software industry.
Is it common practice to sign a non-competition agreement as a term of employment?
i.e. - You're not supposed to do business with competitors while you're an employee and even afterwards for a determined period?
It must not be common in Telecom software, because I don't know anyone who had to sign one.
I know that Microsoft makes you sign a non-compete contract, though.
Come on, Apple employees, fess up.
It's a pretty standard clause for anyone who is working with company secrets these days, and since programmers have access to those in creating the company products... they get signed up.
Now, unless you've managed to specialize yourself into a corner, this isn't usually a problem. If you work for a game company, then go to work for a scientific visualization house, the technologies are generally the same, but the markets are completely different, and you don't infringe on the clause.
Also, most companies aren't going to go after every peon that breaks this, but keep it in reserve for the head brains leaving to work for the competition.
Read before signing is my motto.
You said that you can move from one place to another and avoid the competition but still use the same skills, do you think that's typical across the industry or is it usually something specific?
The specifics would of course be utterly dependent on the companies in question, the job(s) one was employed doing, intended markets of the products and projects, etc, etc, etc.
IMO, once you sign a contract, you're bound by honor as well as law to uphold it. Don't sign it if you don't mean it, and be responsible about making sure what it means before you agree to it. *shrug*
One of the reasons I left my previous job was the insanity and poor management of the music industry. I don't want to get back in that market!
When I was leaving I did try and wiggle out of it, but nothing came of it. It wasn't critical so I didn't bother with it too much.
Now, at my current job, I wasn't required to sign such an agreement. Do I want to compete against them? No. But it does give me a bit of piece of mind.
I am working on personal projects which could be used to enter any viable market and I like having options open to me. Even though my old non-compete doesn't really impact me, I'll be happy when it expires in July.
1. Check your state laws. These are often limited/constrained or even outright illegal in certain states.
2. The more broad and longer term it is...the less likely it is to be in anyway enforceable. Talk to a lawyer of course...but usually it is just a threat...not legally enforceable.
3. The above two comments are less true for people in a better position to have access to real company secrets (customer lists, financial details, etc.)...this is usually more senior management type folks. Most of what most of us deal with aren't really big secrets.
4. Trade secret protection is a different issue and perfectly protectable. But the assumption that you'll automatically "spill the beans" if you work for a competitor is erroneous and difficult to prove.
Have a lawyer look it over.
Some places effectively shut you out of pursuing any moonlighting projects because they lay claim to anything you touch in or out of work. Some stuff naturally slips by, but anything that gets attention is a risk.
This happens at my company, but you can get a "permission slip" if you can convince your director that the outside activity is obviously unrelated to your work at the company.