Career Advice - Switching Jobs and Legalities

Since GRM typically has the answers to everything in the universe, I couldn't think of a better place to ask for some career advice.

I have been working for an engineering company A where I was onsite with another company B. I am back at the main office for company A now, and company B wants to make me an offer, but I found something in my employee handbook that is holding them up.

"Employees cannot accept employment of any sort with a supplier, customer, or competitor of company A without written consent of the president"

Is this sort of thing legal? I had to sign a form that I received and read the handbook. I cannot find anything that says once I am no longer with company A I would be barred from joining company B but I might not be searching for the right terms either.

Pretty standard actually, though all the ones I have had to sign included a time window, ie not for 6/12 months after termination. With out the time window specified it may only apply to working for another company concurrently.

Quit, wait 5 minutes, accept other offer.

Most important advice - run it by a lawyer who knows your local employment law.

For example out here, some of these clauses are legal, some aren't, and it entirely depends on how broad (or not) they are. It also depends on your local legislation if they're enforceable or not and for that you need someone with the appropriate legal specialisation.

I'm not a lawyer and I did not stay at a Holiday Inn last night, but its seems to me your companies restriction is too broad to be enforced. There is no good reason why you should not be able to take ANY type of a job with those folks. At least that's what an attorney told me once when i called him about a no-compete I had to sign one year after I went to work for a company. He told me that right after he told me my job was not worth fighting the owner over.

The company can say what they want but I don't think that most non-compete clauses are enforceable. What are they going to do sue you? Tell them to go ahead a sue you if they'd like. There are some situations where the non-compete clause could be enforceable, but I'm not sure where.

I think what they are saying is you aren't allowed to do side jobs for another company while you remain employed there.

Key point here, the word "Employees". You aren't an employee if you resign.

I did some more searching and couldn't find any wording that extends their non-compete clause past my term of employment with the company. Looks like I just need to quit and get it over with, but I'll check in with HR tomorrow before I do anything crazy.

Datsun1500 wrote: As an employer, if you were introduced to company B because company A subcontracted you to them for a project, it's a lousy move for B to try and steal you, and if I owned A, I'd enforce the no compete and no longer do business with B. Not your battle, but you could become collateral damage.

My personal experience...
Telecom.
Our products were sold by many retailers. We rarely, if ever, hired the knowledgeable people who may have spent years selling our product. The reason being that it caused bad juju between our company and there company for taking their better employees.

So, did the person offering you a job really have the power to offer you the job?
True, you may look like a good candidate and be well qualified but are there bigger forces in action?

In your case, it does say, "...without written consent of the President".
Is it possible to get this signed? Has it ever been done?

I had a non-compete for 270 days. I gave the info to my current employer and they reviewed it and made me sign that I would keep to it and not chase my old accounts for those 270 days.

Show employer B - they have lawyers and HR that can review it for you.

Is that a non-compete?

The way it is worded, it is not clear. It is out of context.

It could be a restriction to taking side jobs, or an avoidance of conflict of interest.

Never ask for legal advice online. You might get an answer from a carpenter.

signed,

a carpenter.

reads to me more like a ban on side jobs that would cut into your company's profits using contacts that you found thru your job..

so get the offer and quit your job if it suits you... old employer doesn't need to know where your new job is until you work with them on a job, which might be kinda weird but, hey, it's just business..

but yeah, the usual "not a lawyer, and haven't been anywhere near a Holiday Inn recently" disclaimer applies here..

Datsun310Guy wrote: I had a non-compete for 270 days. I gave the info to my current employer and they reviewed it and made me sign that I would keep to it and not chase my old accounts for those 270 days. Show employer B - they have lawyers and HR that can review it for you.

I'd let employer B know you have this "non compete" thing in your employee handbook and let them decide what to do. It'd be safer than approaching your current employer if they don't know you're looking. I agree it's broad and don't quite know what it means.

I disagree.

There is no reason to cause a red flag with the new employer, ESPECIALLY if you are not even sure it is a non-compete. They will run.

YOU should learn what it means, what it says, how the company has enforced it in the past, then make YOUR decision.

My last non-compete was 3 pages long. If that 1 sentence is all you've got, it is woefully inadequate. Assume it is a statement on side jobs, quit (so you are no longer an employee), and do whatever you want.

If they try to enforce it, they will learn a valuable lesson in legal management for the next time.

As long as you are not an employee at the moment you accept employment from another company, you are in compliance.

SVreX wrote: Never ask for legal advice online. You might get an answer from a carpenter. signed, a carpenter.

THIS IS THE ONLY ADVICE YOU NEED HERE OP.

signed,

A lawyer who knows jack about employment law in your state.

I was in this exact scenario a few years ago. I found out, that as long as the position was publicly posted, I was able to apply. Company B was not allowed to hire me direct, but in the eyes of Alberta laws, I was free to apply to any public job posting I wanted to. Your specific locale may have different laws. Please check with a lawyer.

I just started a job Monday that violates my non-compete clause. I'm not worried because, according to that clause, I can't work for anyone other than McDonalds and Mr. Green Jeans for 2 years.
I'm the third guy in a year to leave company A for Company B. They've not enforced it yet, so I'm not skeered.

benzbaronDaryn wrote: The company can say what they want but I don't think that most non-compete clauses are enforceable. What are they going to do sue you? Tell them to go ahead a sue you if they'd like. There are some situations where the non-compete clause could be enforceable, but I'm not sure where.

That depends entirely how much Company B wants to maintain a relationship with Company A.

I don't think he ever said company B was a client or competitor of company A.

go to the HR dude in your current company and ask him what that line means... if he asks why, just say you want to know because you are always looking for something better and want to know what all your options are and you just stumbled across that line in the handbook.

he doesn't need to know about any job offers or who they are from.

it's nothing personal, just business, and you need to know where you stand..

Around here in the Bay Area there was collusion among the tech companies to not hire(scalp) each others employees. I think a judge ruled that it wasn't legal and fined the companies. You can sign a contract that says "I'm gonna be Benzbaron's slave for all eternity." Still it's a violation of the constitution and cannot be enforced. It must vary from state to state, a few bucks to a lawyer might be money well spent. The real question is if you do violate the clause what are the repercussions? Will the company lawyer up and sue you or the other company or just get over it and hire another person. Getting into a protracted legal battle with an ex-employee doesn't seem to be a good business plan.

spitfirebill wrote: I don't think he ever said company B was a client or competitor of company A.

If he is on site with Company B while working for Company A, then B is a customer.

If company A was the company I work for, they would send a threatening "Cease and Desist" letter to company B, trying to intimidate company B into firing you.

If company B decided you aren't worth the risk of litigation, then it doesn't really matter if it will stand up in court or not - you're gone.