Posting of responses to my non=compete questions
Jeannie Rodgers
Description
Collection
Title:
Posting of responses to my non=compete questions
Creator:
Jeannie Rodgers
Date:
1/31/2003
Text:
Thanks to all who responded, here are the highlights.
Jeannie
Dear Jeannie,
As a prosthetic resident fresh out of school, non-compete clauses are very
common and will uphold in court. The main concept that one needs to
understand is that the patient and clientelle belong to the business, even
though it is the practitioner that does the work and builds the friendship
and trust bond. The practitioner is an employee of the company and being
financially compensated for his or her actions at the time (by the company).
I could go more into the logic and feelings, but I think that this short
paragraph should give you plenty to consider. Should you need more, please
let me know.
Sincerely,
Donnie Priest
-------------------------
Happy to offer a few comments based on my own experiences. I had worked for
a large national company for 25+ good years. I had signed an employment
contract with a non-compete clause which was deemed enforcable by three
seperate law firms. I had also consulted two of my colleagues who had also
parted ways from this large national company, both of whom had chosen to
contest their contracts. They won the battle, but lost the war. Both
shared that the fight was a very expensive one that involved a lot of
personal stress. I opted to move up the road 50 miles for the duration of
the two year restriction. It went by fast. I would advise that the
employment contract be looked over very closely to see if there might be any
details or loop holes that would allow for a way out or possibly for a
compromise. I'm not sure that it can be anything but a lose-lose situation
for all involved parties.
Steven L. Fries, CPO
Fort Myers, FL
-----------------------
PRE>I can comment on my experience with contracts in the state of Missouri.
If
written correctly they will stand up in court and will be enforced. Also, a
competitor who actively recruits an employee with knowledge of that contract
can be sanction by the court, key word is knowledge. Hope this helps.
------------------------
If it is with Hanger, they will fight you tooth and toe nails with good
lawyers. I know this for sure. I'm sure you will find it varies from State
to State.
Pete
-------------------------
Is it just coincidence that this discussion is just before the Hanger
meeting?
-------------------------
My research has shown that these agreements are common in the O&P field in
the USA for certified practitioners and Management positions. They are
absolutely enforceable in Arkansas and Tennessee as long as certain rules
are followed. Among other issues, the time limit and geographic area cannot
be excessive. A legal advisor can advise you as to what excessive means.
I think these agreements generally are a good thing for employers allowing
them to invest heavily in and promote a practitioner or manager without fear
of giving up strategic information to a potential competitor. This
certainly does not limit the paractitioner from working outside the defined
geographic area during the defined time period. With the current shortage
of good practitioners, gainful emplyment can be had by all. I personally
was not hesitant about signing such an agreement.
David A. Yates, CPO, FAAOP
--------------------------
Jeannie:
I'm a CPO, not a lawyer, so what I say here is not legal advice.
Non-compete clauses fall under state law, so their power varies from state
to state. But generally, the tendency is against them rather than for them.
That is, our economy has been set up under law to encourage competition.
Competition helps the consumer get better value by making service and goods
providers decrease price and increse quality to entice customers to buy from
them.
Therefore, the law tends to protect the employee rather than the employer
because the employee's interests are seen as competitive and the employer's
interests are seen as non-competitive.
Also, the law tends to side with the employee if it feels the employee would
have difficulty obtaining good employment under the terms of the non-compete
contract.
So much for the theory. Now to specifics:
1. A non-compete is more likely to be held valid if it is restricted in
geography and time. That is, if you say an employee can't compete within a
25 mile radius for one year after leaving you, you have a much better chance
than if you just say they can't compete.
2. A non-compete is more likely to be held valid if it is between equal
parties. That is, if you are a well-healed corporation and the employee is
living from paycheck to paycheck, the courts might consider that the
employee felt he or she had to sign the non-compete in order to get the job
with you, and they might find against it because of that. If, however, it is
between a multi-million dollar CEO of a large corporation and the
corporation, the courts might feel that the two parties are much more equal
and uphold the non-compete.
Those are just a few guidelines I've noticed. I'm NO lawyer! Don't take what
I say to the bank.
Regards,
David
-----------------------
In response to Jeannie Rodgers Re: Non-Compete Clauses.
In my 27+ years in this industry, its only been the last 15 or so that =
non-compete clauses have become common place.
My opinion is that we have lost honor in this industry. It was at one =
time an un-written rule that people didn't try and Steal another's =
hard earned patient/referral base.
Along with that if someone did go to work for a competitor, they NEVER,
= EVER would Take patients with them at will, nor would a new employer
= allow that to happen.
People wanted it known that Honor meant something.
Now we need lawyers to 'Keep The Honor'.
Well with that, We in our great state of North Carolina have such a case
= brewing as we speak!
Once this becomes public knowledge via the courts, I will let you all =
know just how it pans out so we can see first hand how these things are
= handled in the real world.
L.Vincent Lebbad RTP
Owner, Tech-Master CF
----------------------
It all depends on what state you are in. I have successfully enforced
them in Texas.
Joe Sansone
C.E.O.
TMC Orthopedic
www.tmcortho.com
------------------------
_________________________________________________________________
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Jeannie
Dear Jeannie,
As a prosthetic resident fresh out of school, non-compete clauses are very
common and will uphold in court. The main concept that one needs to
understand is that the patient and clientelle belong to the business, even
though it is the practitioner that does the work and builds the friendship
and trust bond. The practitioner is an employee of the company and being
financially compensated for his or her actions at the time (by the company).
I could go more into the logic and feelings, but I think that this short
paragraph should give you plenty to consider. Should you need more, please
let me know.
Sincerely,
Donnie Priest
-------------------------
Happy to offer a few comments based on my own experiences. I had worked for
a large national company for 25+ good years. I had signed an employment
contract with a non-compete clause which was deemed enforcable by three
seperate law firms. I had also consulted two of my colleagues who had also
parted ways from this large national company, both of whom had chosen to
contest their contracts. They won the battle, but lost the war. Both
shared that the fight was a very expensive one that involved a lot of
personal stress. I opted to move up the road 50 miles for the duration of
the two year restriction. It went by fast. I would advise that the
employment contract be looked over very closely to see if there might be any
details or loop holes that would allow for a way out or possibly for a
compromise. I'm not sure that it can be anything but a lose-lose situation
for all involved parties.
Steven L. Fries, CPO
Fort Myers, FL
-----------------------
PRE>I can comment on my experience with contracts in the state of Missouri.
If
written correctly they will stand up in court and will be enforced. Also, a
competitor who actively recruits an employee with knowledge of that contract
can be sanction by the court, key word is knowledge. Hope this helps.
------------------------
If it is with Hanger, they will fight you tooth and toe nails with good
lawyers. I know this for sure. I'm sure you will find it varies from State
to State.
Pete
-------------------------
Is it just coincidence that this discussion is just before the Hanger
meeting?
-------------------------
My research has shown that these agreements are common in the O&P field in
the USA for certified practitioners and Management positions. They are
absolutely enforceable in Arkansas and Tennessee as long as certain rules
are followed. Among other issues, the time limit and geographic area cannot
be excessive. A legal advisor can advise you as to what excessive means.
I think these agreements generally are a good thing for employers allowing
them to invest heavily in and promote a practitioner or manager without fear
of giving up strategic information to a potential competitor. This
certainly does not limit the paractitioner from working outside the defined
geographic area during the defined time period. With the current shortage
of good practitioners, gainful emplyment can be had by all. I personally
was not hesitant about signing such an agreement.
David A. Yates, CPO, FAAOP
--------------------------
Jeannie:
I'm a CPO, not a lawyer, so what I say here is not legal advice.
Non-compete clauses fall under state law, so their power varies from state
to state. But generally, the tendency is against them rather than for them.
That is, our economy has been set up under law to encourage competition.
Competition helps the consumer get better value by making service and goods
providers decrease price and increse quality to entice customers to buy from
them.
Therefore, the law tends to protect the employee rather than the employer
because the employee's interests are seen as competitive and the employer's
interests are seen as non-competitive.
Also, the law tends to side with the employee if it feels the employee would
have difficulty obtaining good employment under the terms of the non-compete
contract.
So much for the theory. Now to specifics:
1. A non-compete is more likely to be held valid if it is restricted in
geography and time. That is, if you say an employee can't compete within a
25 mile radius for one year after leaving you, you have a much better chance
than if you just say they can't compete.
2. A non-compete is more likely to be held valid if it is between equal
parties. That is, if you are a well-healed corporation and the employee is
living from paycheck to paycheck, the courts might consider that the
employee felt he or she had to sign the non-compete in order to get the job
with you, and they might find against it because of that. If, however, it is
between a multi-million dollar CEO of a large corporation and the
corporation, the courts might feel that the two parties are much more equal
and uphold the non-compete.
Those are just a few guidelines I've noticed. I'm NO lawyer! Don't take what
I say to the bank.
Regards,
David
-----------------------
In response to Jeannie Rodgers Re: Non-Compete Clauses.
In my 27+ years in this industry, its only been the last 15 or so that =
non-compete clauses have become common place.
My opinion is that we have lost honor in this industry. It was at one =
time an un-written rule that people didn't try and Steal another's =
hard earned patient/referral base.
Along with that if someone did go to work for a competitor, they NEVER,
= EVER would Take patients with them at will, nor would a new employer
= allow that to happen.
People wanted it known that Honor meant something.
Now we need lawyers to 'Keep The Honor'.
Well with that, We in our great state of North Carolina have such a case
= brewing as we speak!
Once this becomes public knowledge via the courts, I will let you all =
know just how it pans out so we can see first hand how these things are
= handled in the real world.
L.Vincent Lebbad RTP
Owner, Tech-Master CF
----------------------
It all depends on what state you are in. I have successfully enforced
them in Texas.
Joe Sansone
C.E.O.
TMC Orthopedic
www.tmcortho.com
------------------------
_________________________________________________________________
Add photos to your e-mail with MSN 8. Get 2 months FREE*.
<URL Redacted>
Citation
Jeannie Rodgers, “Posting of responses to my non=compete questions,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 6, 2024, https://library.drfop.org/items/show/220683.
