2 ms·

If a company is preventing me from working, and doing so is actually important to the company above and beyond a tool to keep me working for them, they can affo

If a company is preventing me from working, and doing so is actually important to the company above and beyond a tool to keep me working for them, they can afford to pay a salary for the duration of the non-compete. The fact that companies aren't willing to do so reveals that the companies want non-competes so they don't have to pay market wages and to restrict freedom of movement of employees. It is a terrible standard to have non-competes for at-will employees. I have actually refused a job offer because the terms of the non-compete were so one-sided for the employer. The contract had things like one-way attorney fees, applied everywhere in the US for a year, wasn't limited to what the company actually worked on, and other employer favored terms. This was for at-will employment, and apparently I was the first person to refuse the job offer due to the contract. I wish more people would refuse to sign such biased contracts, as it stands companies can get away with the practice because too many workers allow them to do so.

nickff 10y ago
The fact that companies are unwilling to pay you to avoid harming them after you no longer work for them proves very little in my view. I understand that a non-compete could reduce potential future earnings, but prospective employees should take that into account, as you seem to have done. I commend you for looking out for your long-term self interests, and agree that more people should carefully scrutinize their employment agreements. This does not bring me to conclude that non-compete terms should be banned, as they are simply one of many terms of the contract which should be priced appropriately.
- throw_away_777 10y ago
  The problem is that there is an asymmetric bargaining power between companies and potential employees. I had a family friend who is a lawyer I could talk to, most people don't have that luxury and don't have the time to educate themselves about non-competes. Talking to people reveals most (wrongly, for most states in the US) think non-competes are unenforceable. Companies use non-competes to avoid paying a fair market wage. The fact that companies resist paying severance in accordance with non-competes reveals the true motive companies have for non-competes - to keep workers at their company while paying below market rates. In situations where companies don't have unequal bargaining power, but still want non-competes (top level executives), these contracts almost always include a large severance package.

nickff 10y ago

The fact that companies are unwilling to pay you to avoid harming them after you no longer work for them proves very little in my view. I understand that a non-compete could reduce potential future earnings, but prospective employees should take that into account, as you seem to have done. I commend you for looking out for your long-term self interests, and agree that more people should carefully scrutinize their employment agreements. This does not bring me to conclude that non-compete terms should be banned, as they are simply one of many terms of the contract which should be priced appropriately.

throw_away_777 10y ago
The problem is that there is an asymmetric bargaining power between companies and potential employees. I had a family friend who is a lawyer I could talk to, most people don't have that luxury and don't have the time to educate themselves about non-competes. Talking to people reveals most (wrongly, for most states in the US) think non-competes are unenforceable. Companies use non-competes to avoid paying a fair market wage. The fact that companies resist paying severance in accordance with non-competes reveals the true motive companies have for non-competes - to keep workers at their company while paying below market rates. In situations where companies don't have unequal bargaining power, but still want non-competes (top level executives), these contracts almost always include a large severance package.