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Ask HN: Restrictive Covenants – what is reasonable and/or typical?
I have received an offer of employment which includes an employee covenants agreement with numerous restrictive clauses applicable for the two year period after the end of employment. For context I am an individual software engineer.
Clauses include non-solicitation of customers/prospective customers, non-compete, non-recruit, non-disparagement, injunctive relief, and and attorney's fees. The two that feel somewhat iffy to me are the broadly defined non-recruit and the non-disparagement clauses for the two year period.
Question for HN: what is the tech industry standard these days for the content of employment agreements? If you were me would you sign this or would you push back?
- wutangson1 5y agoIs this in Cali? Pretty sure non-competes are unenforceable there regardless. Good for you that you actually read the contract. What is the time frame for these provisions- 1 year, 5 years?
- throwaway12555 5y agoThanks for your comment. I live in TN -- all provisions are for 2 years.
- wutangson1 5y agoActually, thank you for posting this question. Before having to step down, the former Attorney General for New York began publicly to take a serious look at provisions like these which he felt were contrary to public policy. Despite what anyone else will tell you, big companies do seek to enforce these contracts in court from media companies to MLB. So, while this is what the lawyers drafted for them, do you want to be bound to that possibility? It depends (yes, I really hate that phrase too). A front-end developer working on a geospatial mobile app may not mind at all if his next job is working for an e-commerce site. But for someone who is pursuing a more specialized path, these terms can stifle career goals.
- throwaway12555 5y agoTY -- That is helpful information to be aware of and to consider.