Reasonable non-compete clause I'm about to sign a contract for a new job. I objected to the non-compete clause because it felt too restrictive. Can someone give me a good example of a single paragraph non-compete clause? (if there is such a thing) Company is your basic web development / outsourcing / hosting shop. |
That said: a "reasonable" noncompete:
(a) Is limited in scope to actual customers of the hosting company
(b) Is limited to the precise role you perform for the company
(c) Includes consideration, such as some form of severance
In many jurisdictions, noncompetes are implicitly and severely limited in duration. In California, of course, they can't be enforced (as part of an employment contract) at all.
Contractor agrees that during Contractor’s engagement with Company and for a period of twelve (12) months following termination of Contractor’s engagement with Company, Contractor will not directly attempt in any manner to solicit from any of the clients or customers of Company which Contractor is/was engaged or whose information or details are being/were shared with the Contractor, business of the type performed by Contractor for Company or to persuade any client or customer of Company to cease to do business or to reduce the amount of business which any such client or customer has customarily done or actively contemplates doing with Company.
I could move to Microsoft or amazon afterwards and have no problem, but GE and a few others I may not because they have subdivisions that are in my current market.
I find this to be acceptable since I am not in this particular industry for love of this industry, and I can still move on to other places without issue.
This non compete clause only take effect two years after the end of employment.