Both sides of the fence from non-competes

Both sides of the fence from non-competes

Joe Sansone

8/21/2002

The reason I require all of my practitioners sign a non-compete
agreement is because of a situation that occurred years ago. There was
one large O&P company with multiple locations. One of their recent ex
employees pulled off a coup and hired the practitioners of all but one
or so of this companies locations. All of the practitioners quit with
no notice and moved into the new locations immediately. Needless to say
most of their business went with them because the old owner was
blindsided and didn't have the resources to hire 3 -4 practitioners with
no notice. If practitioners did not do things like this to their
respective employers non-compete agreements would not be necessary. The
fact is many competitors will hire a practitioner to gain their customer
base and obtain proprietary and confidential information.

On the other hand some good points were made about the restrictions
placed on employees due to these non-compete agreements. Some companies
lock their employees into these agreements simply as a means to keep the
upper hand with their employees. The responses received give some
outrageous examples of how employers use these agreements to their
advantage. But rest assured the employee has rights. No one can force
you to sign a non-compete. At anytime in a right to work state, an
employer can ask an employee to sign an agreement or be fired. An
employee always has the right to refuse to sign. Ask for contracts in
advance. Take them to an attorney. Ask for written assurances that a
non-compete agreement will not be required during your tenure as an
employee. If you are hit with a non-compete agreement, you have
options.

Let's face it whether you are already employed, or a job offer is being
made, you have value to the employer. He wants you, and he is concerned
that you will take business in the future. Use this as bargaining power
to ask for concessions.
1. Limit your geographical limitations (within a 10 mile radius of
where you worked)
2. Limit the time period of the non-compete.
3. Ask for money. In some states like Texas, a non-compete
agreement is not enforceable unless consideration is paid.

Never go to work for a company that is not willing to work with you and
make concessions. Never work for someone that blindsides you at the
last minute with a non-compete agreement. If this occurs, the owner is
showing his hand to you and letting you know what type of person is.
Don't work for this type of company or owner. If concessions are not
made then you have to either trust your employer, or he has to accept
you without the agreement and trust you. A good businessman, whether an
employer or employee, will not rely on trust, but search for fair
contractual guarantees so that they are protected.

I too have been on both sides of the fence. I left a former employer,
competed with him and paid over $120,000.00 in legal fees alone the next
year (check the link below and click the 1st in the category of recent
articles). non-compete agreements, but only if they are equitable.

Joe Sansone
C.E.O.
TMC Orthopedic
www.tmcortho.com < <URL Redacted>>