Non-Compete

I am in somewhat of a good yet bad situation.

I have been offered a position (Sr Systems Administrator) however the position requires a non-compete to be signed. It basically says that I cannot perform the same duties for anybody else in a specific geographic area, for 1 year, regardless of whether I leave on my own free will, or I am terminated by them.

The OTHER interesting part, is that I am more than likely going to be getting another offer (from a different company) of which I prefer to work for over the company requiring the non-compete.

The company that requires the non-compete will require me to go through a background check, to give me a "secret" clearance and can take 2 weeks or so to be finalized.

My question is, if I sign this non-compete, however get offered from the other company that I want to work with, and actually never work for the company with the non-compete, can I decide to not work with them, and take the other offer? I officially cannot even start to work for them, until the background check is complete and I am given access to their secure facility.

Any words of wisdom from anyone? I am expecting an offer from the other company within the next couple of days, however I have to sign my offer letter / non-compete in the next, hour or so.

Any feedback would be greatly appreciated!

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Comments

iBrokeIT

Non-compete agreements are almost always a pro-employer and anti-employee in terms of balance and benefit.

Employment is a two way street, what's in this agreement for you?

How does your salary compare to the employers you would be restricted from joining?

Do they name specific employers or is this agreement overly broad?

If they terminate or let you go, are the going to compensate you for being out of work and the increased difficultly of finding a new employer that would not be restricted?

Non-complete agreements are usually created because the organization has poor employee retention, at least that is the case in my experience.

Cyberscum

Once you sign a legit notarized doc of non-compete it is active right then. Unless it specifically states its effective date or you specifically write it in prior to signing. I personally would never sign a non-compete clause. What if you start your own business, find better work, etc…

Ask to add a note to the NCD, "effective first day of employment with company XYZ” then sign.

ajs1976

Is this for a position with a service provider or some type of contractor?

tomahawkeer

It is a position with a company that holds a contract with the DoD.

shodown

Your mileage may vary.

I have broken non compete's a few times. Companies know they don't hold up in court unless you are in a high level executive position or some position that hold trade secrets and you go off to work for a competitor. Since you are on a DoD contract if you are involved with pricing or something like that it can get fishy, but i wouldn't worry about it. However I did say your mileage may vary, but I left General Dynamics after 6 weeks to go to another company with a non compete signed.

joelsfood

There are a lot of noncompete clauses in dance teacher contracts (not my business, but my sister was in it). In general, they tend to be hard to enforce, but that doesn't mean you won't have significant legal costs if you try to fight it.

That being said, on the other said, a clearance is not a cheap investment for the company in question, even just a secret. Definitely bear that in mind, noncompete or not, before you accept the offer and then go elsewhere.

networker050184

Like everyone has said I doubt they'd come after you over it unless you were in a high level position or have access to lot's of trade secrets/financial information. Still, personally it would be a deal breaker for me if a company wanted me to sign something like that. Just not worth it when the job might blow and you're ready to jump ship in a month.

Blackout

Depends on where you are tbh. Here at Cisco in Raleigh, IBM has non-compete. it basically blocks Cisco from converting them. They are forced to leave for at least 6 months before they can work at Cisco again either as a contractor or Full Blue.

netsysllc

Many states like AZ, where I live, do not honor Non Competes that prevent you from working in the same industry, so check your state laws. About the only thing that will hold up in AZ is that you are not allowed to try to solicit clients.

Plantwiz

I would not sign unless I agreed with the document, and with that, I'd likely make alterations that made sense and permitted me to be employable elsewhere should I need be.

The non-compete is a bit frightening, but as mentioned, they are difficult to enforce...doesn't make them a tool for intimidation. Likewise, you can negotiate your position both with this employer and a next future employer...the next future employer may assist you with legal advice if they want to hire you while under the non-compete with your current employer, or the current employer may allow you to modify the agreement to specify that you will not take a lateral position, but if you were to take a promotion at a new company the non-compete is voided.

And then you could always consult a lawyer beforehand...
(personally, I'd likely strike out the parts I disagreed with if there were any).

philz1982

Here is my personal experience. Spend the money, go see an employment and contractual lawyer. It will cost you 1-2k. Get him to markup the document and have it so that you can work. This is BS to prevent your livelihood and I refuse to work anymore for companies that require contracts. This could seriously impact your ability to work. Get it checked out by a lawyer, modify as necessary and if they really want you then they will accept the changes. Do not accept with the "we will adjust after your our employee".

-Phil

Also,

Don't take the "they are difficult to enforce or in my state they can't be enforced answer". They can simply file suit in a state that does support them with a judge they know. They will bury you in legal fees. This may sound like fear mongering but be careful don't be stupid...

bryguy

I wouldn't sign a non-compete agreement as a DoD contractor because eventually your employer's contract with the DoD will end. It may get renewed, but then again, it might not. You may be placed in the position where the contract ends, and a new company wins the contract. If you signed the non-compete agreement, then you can't work for the new company that won the award. Sure, your company might have other contracts elsewhere, and if you're willing to pick up everthing and move then go ahead and sign, otherwise, I'd stay clear.

tomahawkeer

Well, I turned this job down, however, earlier this afternoon I received another email from the HR person asking if I would explain the reasons I turned the offer down. The 2 biggest issues were Salary (not quit getting where I wanted / needed to be after negotiating) and of course the non-compete. After I explained everything to her, (she was wanting to know if there was something that they could change to make me change my mind) she replied saying that it was an extremely good response and that she was going to forward it to management. I have no idea if this means I will have a different offer coming, however, if they hit my price range, and wipe out the non-compete, I may just have to jump on it.

Thanks a bunch for the feedback guys. I don't post much here anymore, but every experience i've had here has been an excellent one. I may have to change that post frequencies!

lsud00d

Am I the only one who enjoys disputing HR/recruiting scare tactics with HR/the recruiter? I really enjoy the "how much do you make now?" conversation.

< After getting budgeted range for position and agreeing to talk further >
Recruiter: So, what are you currently making?
Me: <candidly> That is personal information that I will not be disclosing
Recruiter: <slightly flustered> Well...OK, but at some point Contoso will require you to disclose what you currently make!
Me: <playfully> Well that's unfortunate for the company because I already have a great job and don't need a new one. Thanks, bye!
Recruiter: <very flustered> Whoah whoah whoah, OK...just...think about it and get back to me, you would be a great fit for this position.

No thanks!

JoJoCal19

A non-compete would be a dealbreaker for me. Especially one that started before I was fully onboarded, and was in effect if the company let me go.

lsud00d wrote: »

Am I the only one who enjoys disputing HR/recruiting scare tactics with HR/the recruiter? I really enjoy the "how much do you make now?" conversation.

Oh I flat out tell them as soon as they mention the S word, "I do not negotiate future salary based on what I make now. I will negotiate based on market rate and my skills and abilities". Thankfully it's not an issue anymore like it was two jobs ago where I was very underpaid.