Non Compete agreements

[one cool egg]

Question: Has anyone been given on of these to sign, that goes as far to say that. Employee cannot or will not engage, Directly or Indirectly Wheather as a Proprietor, Stockholder, Partner, Officer, Employee, Agent, Consultant or otherwise, in a Position Where the employee provides HVACR services that Compete with our Company ___________________________ for a period of
2 years. This restriction Shall apply to the Geographical region of the commonwealth of Virginia, And any additional States in which the company provides its services.

This sounds like its border line un constitutional, Granted the company has people in 10 states. But they are working in 6 of them on my License or Qualifactions as a Qualifer. and they have no back up License.

Tx Combo Lic, Arkansas Class A, Tn CMC-C, Louisiana Commercial Statewide,
Georgia Non Restricted, South Carolina Mechanical Contractor Non Restricted on Tonage.

SOUNDS LIKE IF I SIGN THIS, AND IF I QUIT OR IF THEY FIRE ME, (A) I CANT USE MY TRADE LICENSE OR GO TO WORK FOR ANOTHER COMPANY IN MY HOME STATE FOR 2 YEARS. WHAT YOUR TAKE.

[mustardman]

Question: Has anyone been given on of these to sign, that goes as far to say that. Employee cannot or will not engage, Directly or Indirectly Wheather as a Proprietor, Stockholder, Partner, Officer, Employee, Agent, Consultant or otherwise, in a Position Where the employee provides HVACR services that Compete with our Company ___________________________ for a period of
2 years. This restriction Shall apply to the Geographical region of the commonwealth of Virginia, And any additional States in which the company provides its services.

This sounds like its border line un constitutional, Granted the company has people in 10 states. But they are working in 6 of them on my License or Qualifactions as a Qualifer. and they have no back up License.

Tx Combo Lic, Arkansas Class A, Tn CMC-C, Louisiana Commercial Statewide,
Georgia Non Restricted, South Carolina Mechanical Contractor Non Restricted on Tonage.

SOUNDS LIKE IF I SIGN THIS, AND IF I QUIT OR IF THEY FIRE ME, (A) I CANT USE MY TRADE LICENSE OR GO TO WORK FOR ANOTHER COMPANY IN MY HOME STATE FOR 2 YEARS. WHAT YOUR TAKE.

Another thread is going about this bottom line is they can't stop anyone from earning a living however have a lawyer review it if you are concerned

[klove]

My wife is in corporate level healthcare management, and she has told me that a non-compete agreement is virtually unenforceable in Alabama. The problem, though, is that it creates a way for your ex-employer to drag you into a fight that you probably don't have the money or time (or inclination) to be in. Then they'll keep you in that fight until you lose, even if you win. I'd be hard-pressed to put my name on one.

Seems to me that if they're working solely off of your license, they ought to be a little reluctant to piss in their own cereal bowl. You leaving could shut down operations.

[snowboarder1]

do not sign it this is what im dealing with look at the other posts on this subject

[one cool egg]

I have already sent it to My Attorneys for there Legal Take on it.
I have No Intention of SIGNING IT.

[secorp]

The only way a no compete claus is forcible is if they pay you wages for the term. you see this in the media a lot. most media types have to sit out a period of time before they can sign with a new network, the news anchors for instance get a lump sum of cash to sit it out, if they do not wait out the required amount of time, they get sued for the lump sum payout plus damages. so even if you sign it they have to pay your wages or it is without precedence in the court of all sate laws.


By the way I am not a lawyer.

[Under_Control]

Usually if you do not go after your old clients, and dont infringe on your former companys contracts or customers, they will not enforce this. It is mostly to keep you from stealing clients. It gives them some president to make your life miserable. Also if you employ in a different role, it doesnt apply, I.E. from service to sales, frontline to supervisor. I am also not a lawyer.

[HVAC9900]

Don't know why any legit company would try this on a service tech.As others have mentioned, they are unenforceable and would never make it to court.
That's an indicator that they may be difficult to work for.
I'd decline working for them, given a choice.

[madhat]

Do not sign it, I worked for a Company that was going down hill quickly and they pushed them on us. When I went to find employment, after they closed shop, the first thing out of the prospective employer was, "Did you sign the 'Not to Compete' ?" BTW; the Not to Compete followed the contracts, which had been sold off.

I signed a Not to Compete with them, that was reworded, by me and my Lawyer. It said they would Not Compete with me! The two company officers, (they were playing Lawyer) signed it along with me and it was Notarized. Wondered what would happen if I sent a letter to the new holder of the contracts, to Cease and Desist, with a copy of the "Not to Compete."

[shephvac]

I agree with Under Control on this. My experience was very ugly several years ago and nobody but the lawyers came out ahead. My ex-business partner went after the old employers current customers and active employees which I feel was not the correct thing to do. It still cost a lot of money, time and a friendship at several levels.

If you don't kick them first then they probably won't kick you back.

[Dowadudda]

My wife is in corporate level healthcare management, and she has told me that a non-compete agreement is virtually unenforceable in Alabama. The problem, though, is that it creates a way for your ex-employer to drag you into a fight that you probably don't have the money or time (or inclination) to be in. Then they'll keep you in that fight until you lose, even if you win. I'd be hard-pressed to put my name on one.

Seems to me that if they're working solely off of your license, they ought to be a little reluctant to piss in their own cereal bowl. You leaving could shut down operations.


Your really think most HVAC contractors are that loaded to have this kinda money laying around to use for that purpose? I think not. Most can't tie their own shoes.

[Tool-Slinger]

Question: Has anyone been given on of these to sign, that goes as far to say that. Employee cannot or will not engage, Directly or Indirectly Wheather as a Proprietor, Stockholder, Partner, Officer, Employee, Agent, Consultant or otherwise, in a Position Where the employee provides HVACR services that Compete with our Company ___________________________ for a period of
2 years. This restriction Shall apply to the Geographical region of the commonwealth of Virginia, And any additional States in which the company provides its services.

.................................................. ......................

That is nuts. Makes you unemployable elsewhere. Tell them it is nuts, re-write it or you will never sign such foolishness. I doubt that is enforceable in ANY state, but it is an invitation to a lawsuit.

[secorp]

Tool Slinger,
I agree, that is why they have to compensate you. I have seen many trails in many states end because there was no compensation, especially right to work states. that is another reason Unions hate right to work states.

If the company did go to trial you just do not show up. the judge will dismiss, if you show up the trail proceeds and lawyers get compensated.


I am not a lawyer.

[Tool-Slinger]

Tool Slinger,
I agree, that is why they have to compensate you. I have seen many trails in many states end because there was no compensation, especially right to work states. that is another reason Unions hate right to work states.

If the company did go to trial you just do not show up. the judge will dismiss, if you show up the trail proceeds and lawyers get compensated.


I am not a lawyer.
Not disagreeing with anything you just said,...

The process for how that could work out in court is uncertain, but generally would be seen as unenforceable. That is pretty much a joke of a contract, worded that way. It could still end up in court. I would never risk the hassle, not for one minute. If I ever got a notice I am "BEING SUED", I am going to make "Instant Pee".

Point being, employment is uncertain as one may quit or be fired... need not have a possible lawsuit hanging in the aftermath when I go look for my new job.

I think a non-compete contract is probably okay, if it were written to protect a company from an employee who embarks on a quest to 'steal clients'... But the contract, as presented by the OP, is more like a "You Will Work For Us OR Never Work For Anyone Again" contract. I thought it was pretty funny actually. He11 would freeze over before I would ever sign such foolishness.

[klove]

Your really think most HVAC contractors are that loaded to have this kinda money laying around to use for that purpose? I think not. Most can't tie their own shoes.

The question asked didn't have anything to do with how much money an HVAC contractor has. It was about the validity of non-compete agreements, so what's your point?

[A1 Burt]

ONE COOL EGG if thay are working on your license & working in a few states & have no back up plan if you leave . just start your own business and let them know that thay can hire you as a sub then you can call the shots

[the dangling wrangler]

Answer this one simple question.

Can signing this document, benefit you in any way? If the answer is yes, sign,if not, then don't.

I'm just guessing, no it can't. Not the way it's written.


This subject has been covered not too long ago. I was a lot more vocal then, I won't be now.

[timebuilder]

Question: Has anyone been given on of these to sign, that goes as far to say that. Employee cannot or will not engage, Directly or Indirectly Wheather as a Proprietor, Stockholder, Partner, Officer, Employee, Agent, Consultant or otherwise, in a Position Where the employee provides HVACR services that Compete with our Company ___________________________ for a period of
2 years. This restriction Shall apply to the Geographical region of the commonwealth of Virginia, And any additional States in which the company provides its services.

This sounds like its border line un constitutional, Granted the company has people in 10 states. But they are working in 6 of them on my License or Qualifactions as a Qualifer. and they have no back up License.

Tx Combo Lic, Arkansas Class A, Tn CMC-C, Louisiana Commercial Statewide,
Georgia Non Restricted, South Carolina Mechanical Contractor Non Restricted on Tonage.

SOUNDS LIKE IF I SIGN THIS, AND IF I QUIT OR IF THEY FIRE ME, (A) I CANT USE MY TRADE LICENSE OR GO TO WORK FOR ANOTHER COMPANY IN MY HOME STATE FOR 2 YEARS. WHAT YOUR TAKE.

I see you did not search on this topic first. We have had many discussion on these agreements. Here are some highlights.

1) They are state-specific. Your laws govern what can be enforced in the agreements.

2) The ONLY way you will know what can be there with certainty is by consulting an attorney. You may be advised that you can comfortably sign and not worry, because x, y, and z are not enforceable. Fine.

3) These are common in many industries.

4) Make sure you get a copy of anything you sign.

So, while asking here about these is interesting and you can gain some perspective, you should have this doc reviewed by an attorney who does this kind of work in your state.

[lane]

I signed a contract that was worded the same. With a minimum base pay clause. A termination clause that said if they terminated my emplyment I would be compensated for 2 years of base salary.

Lane

[timebuilder]

The only way a no compete claus is forcible is if they pay you wages for the term.

That is not what I have seen.

A noncompete governs working for a competitive enterprise using value that belongs to your previous employer (such as company info, customers, contact lists, or your name and likeness) for a period of time in a specific geographic area.

I have never, ever, heard of someone being compensated during the terms of the non-compete agreement.

Usually, a non-compete is an addendum to an employment contract, where things like dress, behavior, hours of expected availability, rate of compensation, and even severance are all specified.

[one cool egg]

Well i was sent A round trip Air ticket to the office, the manager that work under me in the company were also done the same way.

the owner ship ( Upper Management ) had all 4 of us in the confrence room Wensday and around 3:00 pm they attempted to lay it out. we all stood firm and told them we would take the time to read the 7 page agreement at the hotel overnight.

1 idiot said thers no need i will go ahead and sign mine now!!! We where scheduled to fly out on Thursday night. when we got to the office thursday morning they called me into the owners office and said ok now sign it and i said No But ---- No and handed them a letter from my Lawyer. I was told i needed to wait in the warehouse.
They got the other man from Atlanta and he told them the same thing.

Needless to say they had the Purchasing manager take us for a early lunch and then straight to the Airport at 12 noon and our flights where at 7:30pm
they didnot Terminate. and i am not going to give them a chance i will be leaving veryvery soon.

I am now looking for a job with my six state contractors License.

[one cool egg]

They also told us they would be giving the same agreement to all field techs.
i was thinking they really dont want there business , it evident.

[secorp]

That is not what I have seen.

A noncompete governs working for a competitive enterprise using value that belongs to your previous employer (such as company info, customers, contact lists, or your name and likeness) for a period of time in a specific geographic area.

I have never, ever, heard of someone being compensated during the terms of the non-compete agreement.

Usually, a non-compete is an addendum to an employment contract, where things like dress, behavior, hours of expected availability, rate of compensation, and even severance are all specified.

The meat of the matter is that you can not be denied the right to work. unless you are compensated.

logos and T shirts are another matter.

[timebuilder]

I'll type slowly so everyone can understand this: in most states, a noncompete signed as a condition of employment limits the work you can perform in competition with your previous employer in a specific geographic area, for a specific amount of time, and you are not compensated during that period. If you don't believe me, consult an attorney in your state.

[secorp]

I will type this even slower, I will be back tomorrow to finish....

[timebuilder]

I will type this even slower, I will be back tomorrow to finish....

If you have an example that is counter to what I have posted, please feel free to post it here.

I have known several people in Pennsylvania who were subject to noncompetes, and this is how they were executed.

[beshvac]

I'll type slowly so everyone can understand this: in most states, a noncompete signed as a condition of employment limits the work you can perform in competition with your previous employer in a specific geographic area, for a specific amount of time, and you are not compensated during that period. If you don't believe me, consult an attorney in your state.

This is CORRECT. I worked for a company that used them and enforced them. You leave and start a company, they are enforceable, i.e. the court system sends you a cease and desist order. YES, you can still WORK, outside the radius and for the time period specified. NO COMPENSATION DURING THE TERM REQUIRED,

[tbone2u]

We were just asked to sign one at my company because of an employee who was let go for misconduct, and started actively perusing our contract customers for his new employer. It clearly stated that it was only to not go after their customers though.