Re: Interesting Article

Re: Interesting Article

Sue Ten Pas and Harold Anderson

8/20/2002

Marcus,

Thanks for a wonderful read. After reading it, I wonder why severence
packages are not standard for practitioners. While the idea makes perfect
sense, I still have a big problem with NCAs.

I signed one, once. Signing it was a condition of a raise. When I
mentioned it to one of the surgeons I worked with, he opined that making me
sign the NCA was not legal due to some rule of self determination. I don't
know the law he was referring to or even if it was accurate. But the idea
makes sense. By signing an NCA in our field, especially in smaller cities
where there are fewer opportunities is restricting our rights to work in our
chosen field in the place where we want to live.

If the severence package was large enough to provide income through the
course of the NCA time frame, the restriction would have less of a financial
impact but it would still be a restriction of our rights to work in our
chosen field in the place where we want to live.

Harold Anderson, CO

No longer have to worry about NCAs - just getting the bills paid:-)



Marcus Boren, B.Sc., C.P. wrote:

> Hi Everyone,
>
> I ran across this article today, and thought it would be interesting
> reading for the list members.
>
> Any thoughts on this?
>
> Marcus Boren, CP
>
> Signing non-compete agreements for fun and profit
>
> Companies love to have new hires sign non-compete agreements (NCA's),
> wherein the employee agrees that if and when he leaves the company, he
> will not join a competitor or compete with the company for a prescribed
> period of time.
>
> The prospect of signing an NCA worries most people, and it should. An
> NCA can prevent you from working in your field and it can cost you a lot
>
> of money in lost income.
>
> There are many tactics you can use to limit the effects of an NCA,
> including restricting the time period and the geographic area to which
> it applies. But, I've got a better approach that startles most
> companies. Try it when you negotiate your next NCA.
>
> Recognize that signing an NCA costs you money and confers a benefit on
> the company. For the deal to be fair, the NCA should cost the company
> money, too, and it should confer a benefit on you.
>
> If a company wants to restrict your ability to earn a living, it should
> give you something in return: a guaranteed severance package for the
> term of the NCA, to tide you over while you're out of work and not
> competing. The severance should be yoked to the terms of the NCA. That
> is, if the NCA applies whether you quit or are fired, then the severance
>
> should be paid in either case. This is a deal that shows good faith when
>
> the company hires you.
>
> It's no fun to be left holding the bag when you leave your job. If a
> company wants to lock you out of the market, it should compensate you
> for it. What I'm suggesting is a win-win approach to NCA's that forces
> the employer to put some skin in the game.
>
> When it has to pay for the benefit of an NCA, a company will think
> carefully before asking you to sign one.
>
> Let's make sure there's fun and profit for everyone in NCA's.
>
>