News for hackers. Stuff that matters.
Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @10:27AM (#14776772)
So for new tech people getting started in their careers, make sure you save up 4-6 months of income so you don't have to put up with this garbage. They say money is power, but before that, it's freedom.

Don't allow yourself to be pushed around. If you aren't strong enough mentally yet to do it for yourself, do it for the other people in the field who aren't strong enough.

If they offer to pay you to train your replacement, tell them to pound sand and walk out. Be prepared financially.

If they try to force you to sign a non-compete, be willing to walk away until they make it fair and reasonable.

If they try to get you to sign away all your IP, tell them no.

Companies don't expect you to read that contract you are signing, and most of them just pull a boilerplate contract off the internet. Almost all of them are grossly one sided to the company. This includes taking ownership of anything you've developed in the past on your own.

All of this is easy if you have 4-6 months of income saved up. You are in high demand; companies will wither on the vine without good, efficient systems running them. Now, but even more so in the future.

Re:Idaho has made it easier for companies to enforce noncomp... by SCAQTony on Saturday July 15, 2017 @11:28AM (#14777129)
…Or move to California — Job Hopping, A California Right and Non Compete Agreements: http://www.rhdtlaw.com/job-hopping-california-right/
Re:Idaho has made it easier for companies to enforce noncomp... by austincheney on Saturday July 15, 2017 @01:07PM (#14777662)
Or move to Texas where laws make non-compete agreements are really hard to enforce, as in the employer has to prove harm not associated with loss of labor. Cost of living is about 3-10x cheaper in Texas.

https://www.texasnoncompetelaw.com/articles/noncompete-agree...

Re:Idaho has made it easier for companies to enforce noncomp... by CalChris on Saturday July 15, 2017 @01:34PM (#14777836)
> Cost of living is about 3-10x cheaper in Texas

Idaho is cheaper than Texas. And no, Texas is not 3-10x cheaper than even California. In addition, you get paid less in TX than in CA.

Re:Idaho has made it easier for companies to enforce noncomp... by austincheney on Saturday July 15, 2017 @03:41PM (#14778513)
http://www.bestplaces.net/cost-of-living/fort-worth-tx/los-g...

TX doesn't have state income tax, but CA does. TX has close to the cheapest fuel prices in the country while the bay area has the most expensive fuel prices in the country. Food costs less in TX and there is no sales tax on retail food purchases in TX.

Yes, you get paid less in TX. For an average software developer you tend to get paid about 40-60% less. Since the cost of living is probably 3x more in CA getting paid a little less in TX still puts you at a huge financial advantage.

I am not guessing at this. I am looking at the numbers and performing very simple arithmetic.

Re:Idaho has made it easier for companies to enforce noncomp... by CalChris on Saturday July 15, 2017 @03:50PM (#14778566)
Meals are taxed in TX as they are in CA. Groceries aren't taxed in TX as they aren't in CA.

Gas is more in CA (2.89) than in TX (2.03). Our property tax rate is 0.81%. Yours is 1.90%.

The #1 employer in TX is Walmart. In CA it's UC. Not that that really matters. [1]

You haven't shown that the COL is 3-10 times higher in CA than in TX. A reliable cite would help. More, yes. 3-10 time more? No, that's not even remotely true.

[1] http://www.marketwatch.com/story/these-are-the-largest-emplo...

Re:Idaho has made it easier for companies to enforce noncomp... by austincheney on Saturday July 15, 2017 @06:14PM (#14779303)
* http://www.compare50.org/chart/index/chart/218/states/57,96 - A good place to start with lots of data. The graphs indicate state by state rank opposed to raw values.

* I already linked to a site that does city by city comparisons, but there are so many online.

Re:Idaho has made it easier for companies to enforce noncomp... by CalChris on Saturday July 15, 2017 @06:52PM (#14779522)
Thank you, sir. That gives rankings. I'm still waiting for something that shows that CA has a 3-10 x COL than does TX. Your per capita state spending is $4,568 vs CA's $6,774. So it isn't there.

Payscale sure isn't saying 3-10x.

http://www.payscale.com/cost-of-living-calculator/Texas-Aust...

Re:Idaho has made it easier for companies to enforce noncomp... by Veelox on Tuesday July 18, 2017 @01:25PM (#14798349)
Per http://www.bankrate.com/calculators/savings/moving-cost-of-l...

If you move from San Francisco to Austin TX, you can take a 45% pay cut and live the same, I don't think this accounts for income tax which comes out to probably brings it to a 50% pay cut.

So I would say 2x

Re:Idaho has made it easier for companies to enforce noncomp... by throwaway91111 on Saturday July 15, 2017 @01:05PM (#14777644)
Yea, that's not enough. If it isn't enforcable in your state, demand they rip it out of your contract. This isn't going to go away otherwise.
Re:Idaho has made it easier for companies to enforce noncomp... by nnutter on Saturday July 15, 2017 @11:20AM (#14777079)
Even if you save up the money to not be desperate in these situations they still have a very high cost. Say you’re 30 and invest in a big index mutual fund. Having to use these funds means shaving 8x as many months off your retirement.
Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @12:12PM (#14777378)
I have an account specifically for "rainy days" like this that is separate from my retirement. That way I'm more comfortable with it.
Re:Idaho has made it easier for companies to enforce noncomp... by ajmurmann on Saturday July 15, 2017 @12:46PM (#14777550)
All you are doing is changing the label. The cost is still the same.
Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @01:19PM (#14777738)
What's the cost? Opportunity cost? You can still put it in a money market account when it's inactive.
Re:Idaho has made it easier for companies to enforce noncomp... by ajmurmann on Saturday July 15, 2017 @02:56PM (#14778287)
If you put money for example into one of Vanguard's "Retirement 20xx" funds you can make some pretty good returns that you can use to retire earlier. If you are in your 30s by the time you retire the money would have increased about eightfold as the grand parent said. Since you will have to pay taxes on those gains if it's not a 401k you will likely only end up with like 4-6x of what you have right now. So one month off due to these shenanigans could be 4-6 months of earlier retirement.
Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @05:03PM (#14778927)
That is all true but it still doesn't negate the fact that you should have a rainy day account and having said account has a high cost because:

1. Those 401K's and IRA's have a yearly cap, so anything above that cap doesn't apply. 2. Saving your "rainy day" account is a one time thing. Once you reach 4-6 months of income, you are done. 3. Like we agree, you can put it in a non-tax sheltered fund.

Also, not sure if you are going to get 8x return in 30 years. Maybe 50 years ago. When I was in college you could expect to double your money ever 7 years. I don't believe that's still the case.

Re:Idaho has made it easier for companies to enforce noncomp... by ajmurmann on Saturday July 15, 2017 @05:12PM (#14778972)
I am not arguing against having a rainy day account. You should absolutely have one. I am arguing against tapping into it to take a few months off till Idaho's non-compete period expires. Over the last few years I made ~9% on my Vanguard investments. Vanguard's Retirement 2045 fund made 11% in the last 5 years and 5% in the last 10. That's all still much better than having it wast away in a money market account. You still can get the money out within days.
Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @08:25PM (#14779845)
Oh, most non-compete agreements I've seen are for at least a year. A rainy day fund isn't for waiting that out. A rainy day fund is so you aren't desperate enough to have to take a job that requires you to sign a non-compete like that in the first place.
Re:Idaho has made it easier for companies to enforce noncomp... by walshemj on Saturday July 15, 2017 @01:59PM (#14777968)
presumably the op retirement is in a pension or 401 for the tax benefits an emergency fund is just cash.
Re:Idaho has made it easier for companies to enforce noncomp... by throwaway91111 on Saturday July 15, 2017 @01:06PM (#14777655)
Saving and investing are two different things. What's your point?
Re:Idaho has made it easier for companies to enforce noncomp... by koolba on Saturday July 15, 2017 @02:20PM (#14778098)
While I agree to most of these, I can't imagine hiring someone and not owning the resulting IP of anything that's developed. If you're referring to something outside the scope of work then sure if it's unrelated (think side project vs competitor), but if I'm paying you to work, I own what you built, both the end result and the IP.
Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @02:23PM (#14778115)
I would fully accept that and that's completely reasonable, but that's not what most contracts I've read say. I just read one the other day that stated the company owned all IP and inventions created prior to hiring and any created during employment regardless of whether or not it was written for the company or on company time. I'm surprised they didn't include any future IP as well.
Re:Idaho has made it easier for companies to enforce noncomp... by koolba on Saturday July 15, 2017 @02:33PM (#14778153)
> I just read one the other day that stated the company owned all IP and inventions created prior to hiring ...

Haha. Okay that's seriously ridiculous. I'd have a field day berating any org that tried to push that on me.

> ... and any created during employment regardless of whether or not it was written for the company or on company time.

I'd disagree with you on the non-company time. Depending on the nature of the work whether it happens on the clock or not isn't clear cut. Hence the default of the company owning everything while you're doing work for them as an employee.

The best defense for this as an employee is to get a written exemption for anything non-company related that you're working on, or a generic exemption as a matter of company policy for things like off-clock FOSS contributions.

Just about every large scale FOSS project requires contributors to attest to IP ownership and assign copyright of contributions. Most also explicitly ask if your employer has granted you permission to offer you contribution. There are many stories of projects that don't do this trying to track down individuals years after the fact to facilitate relicensing.

Now in a more specific work for hire (i.e. contracting / consulting) situation, it does need to be tightened to reflect the actual work at hand. Otherwise you can't work on anything else

> I'm surprised they didn't include any future IP as well.

Be even funnier if they did and also required to actually create some too. Instead of a golden parachute it'd be lead anchor.

Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @08:32PM (#14779857)
>I'd disagree with you on the non-company time. Depending on the nature of the work whether it happens on the clock or not isn't clear cut. Hence the default of the company owning everything while you're doing work for them as an employee.

That's the real issue. Spolsky wrote up something on that a few years ago. It went along the lines of if you were being paid to create and build apps for a company and after hours you developed your own killer app but kept it for yourself, that wouldn't be fair to the company employing you to make great apps for them.

That makes sense. I also think any company that expects 100% of your IP during employment should pay you more than what they would pay someone to work 40 hours a week.

It doesn't make sense for niche software companies trying to take your IP for completely unrelated ideas that they would never use in their product line, particularly when you are working on your stuff after hours.

Re:Idaho has made it easier for companies to enforce noncomp... by karthikb on Tuesday July 18, 2017 @11:43AM (#14797415)
But this is where equity incentives serve to align these interests. If you develop a real killer app on your spare time, but integrated into your company's product would significantly increase the valuation, retention, reduce churn, etc - then with equity (whatever the structure may be) you have an incentive to bring that work to the table. If it's pure cash, then your benefit is the same regardless of if you keep this work (done on your own time, on your own equipment, and off-site) or share it.
Re:Idaho has made it easier for companies to enforce noncomp... by mgkimsal on Saturday July 15, 2017 @10:34AM (#14776815)
> You are in high demand

maybe. it may just be people willing to sign one-sided agreements are in high demand.

Re:Idaho has made it easier for companies to enforce noncomp... by CydeWeys on Saturday July 15, 2017 @10:58AM (#14776950)
Companies use these highly one-sided contracts with IP provisions and such because they can and because it's not any more difficult to include it in their boilerplate contract than to not include it, not because it often makes a material difference for them.

Except for the non-compete clauses. Those are materially important and likely to affect a large proportion of total employment contracts (whereas IP clauses are rarely relevant).

Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @10:42AM (#14776851)
I guarantee the majority of companies don't even know what's in that contract. They just pulled it off the internet because someone said, "Oh crap, we need an employee agreement. Google one." or "Find someone else's contract agreement."

If they go through all the trouble of recruiting you, interviewing you and deciding they want you, they'll be willing to consider revising it, especially since they probably didn't give it much thought in the first place.

Just raise your concerns in an intelligible way and don't be an asshole about it. I just did that for a contract. I said, "I can't give you all my inventions, I have a ton of them." They didn't even realize that was in the contract and they revised it. Poof. I got a fair agreement.

Re:Idaho has made it easier for companies to enforce noncomp... by ryandrake on Saturday July 15, 2017 @11:49AM (#14777247)
This has not been my experience at all. At every place I've ever worked, when I pointed out things in the employment agreements that I objected to, I was given a very stern and unambiguous "Sign it unmodified or GTFO." I've pretty much stopped asking. There's always a line out the door of people who are in equal need of the job and will sign whatever is put in front of them.
Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @12:14PM (#14777394)
All the ones I've ever signed had an exception list for previous IP. You can sign it as is, just make sure your exceptions include all your previous work. You try something like, "Excluding any work or IP made or started before employment with xyz." "Excluding any work not explicitly requested by company xyz, etc." That way you can sign it as is but use the exceptions section.

You have to ask yourself, is working for that company worth giving them explicit rights for all your prior work you've done for yourself? That's exactly what they are asking for in most cases. Let's say you make it big with something you wrote before you even started working there and they find out. They can take it right from under you if you sign that contract without exceptions. Just know what you are getting into and what they are really asking you to commit to.

I actually left a job because I wanted to start a new project and I had signed a similar document without an exception. I didn't want them to have any claim with the IP. Also know, any investors will probably shy away from you if you've signed away your IP rights like that.

Re:Idaho has made it easier for companies to enforce noncomp... by crdoconnor on Saturday July 15, 2017 @02:51PM (#14778259)
>I guarantee the majority of companies don't even know what's in that contract. They just pulled it off the internet

I worked for one of those companies once. He apparently didn't read his bank statements either, hence I didn't get paid for a significant chunk of the work I did.

Nobody before or since has acted surprised about the contents of their own contract. I'd view it as a major red flag.

Re:Idaho has made it easier for companies to enforce noncomp... by brightball on Saturday July 15, 2017 @01:48PM (#14777905)
I still don't understand the almost violent resistance to noncompetes. If they are "you can't work otherwise" then sure... it if it's literally that you can't go work for a direct competitor or take their clients to start your own I don't see the issue. That's more a matter of ethics than anything else and seems perfectly reasonable for a limited period of time (6 months to a year).
Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @01:55PM (#14777947)
That's the problem is they are so unfair.

What if you worked for some huge conglomerate like GE. What industry does GE not compete in? Or Microsoft? Walmart? Amazon? Also, their duration is typically 2-4 years. So you can't work in any major industry that GE competes in for 4 years and you get zero compensation for it. How is that anywhere close fair or reasonable?

Non-competes also include no hiring. That further limits my potential employment. If me and my buddy quit because we're sick, or bored of a place, we can't hire either other or recommend hiring each other for 2-4 years.

Guess what? If you have people who can't find employment and a good chunk of their opportunity is blocked because of non-competes, guess who pays for it?

Also, here's the crux of the hypocrisy. Companies are all about free market, but only when it benefits them. In a free market, I should be free to work anywhere for anyone. The only restriction would be not to divulge IP or trade secrets. I'm perfectly fine with that, but chances are, that's not what you are signing.

Re:Idaho has made it easier for companies to enforce noncomp... by thanksgiving on Saturday July 15, 2017 @02:23PM (#14778112)
When I was younger, I used to think that non-compete meant that the company would continue to pay you the same salary as before for the duration of the non-compete. It just sounded like common sense.

I was young and naive. I am not that young anymore but I still think this needs to be a nationwide law. If you want me to not work (in an industry) for a particular length of time, you ought to pay me to not work about as much as what I would have made by working. Sure, put a ceiling at 50x minimum wage (so currently $725k a year https://www.google.com/search?q=7.25*2000*50 ) or something but this is just common sense that if you want to prevent me from working, you should pay me for the duration that I am not working.

Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @02:36PM (#14778168)
I agree. I would say first make it non enforceable unless the employee is a certain status with certain parameters (like ownership) and then it's some multiple of salary after X years at the company. So you couldn't extend it to someone who's been there 6 months.
Re:Idaho has made it easier for companies to enforce noncomp... by KirinDave on Saturday July 15, 2017 @01:56PM (#14777951)
I really suspect you don't understand how broad tech-noncompetes are.

Given the court and arbitrator's lack of expertise, we see companies arguing that any software work at all is competition. Especially for emrging high-demand fields like machine learning.

Re:Idaho has made it easier for companies to enforce noncomp... by kafkaesq on Saturday July 15, 2017 @02:14PM (#14778060)
I really suspect you don't understand how broad tech-noncompetes are.

Yeah, that's the issue basically. These things (and a lot of the golden handcuffs companies, especially inexperienced startups, like to slap on new employees - as if they didn't know any better) go way farther than anything remotely reasonable.

The end result being to discourage genuine trust and collaboration, rather than to foster it.

Re:Idaho has made it easier for companies to enforce noncomp... by Consultant32452 on Saturday July 15, 2017 @02:31PM (#14778148)
Is this happening a lot in the tech world? I don't mean an anecdote here and there. I did some quick google searches and it seems like non-competes are usually enforced against people in sales/marketing of some sort, taking their client list with them. That seems like a completely reasonable enforcement. The instances that make headlines in the tech world are the ones where Uber may have intentionally stolen Google tech, or at least the employee intentionally brought Google tech with them to Uber. Again, completely reasonable.
Re:Idaho has made it easier for companies to enforce noncomp... by KirinDave on Saturday July 15, 2017 @02:34PM (#14778160)
Yes. It happens to anyone who doesn't move to California. You can Google for stories on it.
Re:Idaho has made it easier for companies to enforce noncomp... by Consultant32452 on Saturday July 15, 2017 @02:36PM (#14778169)
I didn't move to California and it's never happened to me or anyone I know. I did Google for stories on it and I couldn't find any stats. Do you have any?
Re:Idaho has made it easier for companies to enforce noncomp... by KirinDave on Saturday July 15, 2017 @02:52PM (#14778269)
Many Microsoft Employees. Maybe try googling.

But there is also a larger question of why we allow them at all. They seem unconscionable in any industry. They're roughly akin to suggesting that if you train someone you own rights to their training.

Re:Idaho has made it easier for companies to enforce noncomp... by Consultant32452 on Saturday July 15, 2017 @02:55PM (#14778285)
That's really not helpful. How many is "many?" And how many of those "many" would a reasonable person think is justified? The Uber case I mentioned previously is something I think a reasonable person would find justified. Is MSFT a bad actor or is this an industry-wide problem?
Re:Idaho has made it easier for companies to enforce noncomp... by KirinDave on Saturday July 15, 2017 @03:23PM (#14778429)
I spent 22 seconds more to Google this than then 45 seconds to type it in. I picked the first link in a string of many abuses of nocompetes.

You will get no more of my time: http://gawker.com/378444/did-you-sign-googles-noncompete-goo...

Re:Idaho has made it easier for companies to enforce noncomp... by Consultant32452 on Saturday July 15, 2017 @08:38PM (#14779870)
Again, how frequent/common is this in the industry? Articles with anecdotes are completely unhelpful. How many lawsuits have been filed in the past 5 years by former employers over non-competes? How many times have those employers won?
Re:Idaho has made it easier for companies to enforce noncomp... by KirinDave on Saturday July 15, 2017 @09:33PM (#14780038)
Again, "Consultant32452," you're mistaking our relationship. You're quite welcome for the free information, but don't mistake my largesse for interest in your conclusions or an obligation to help you.

You couldn't even say, "Please" or thank me for what I've offered you thus far. Is common decency not part of the cultural consensus where you're from?

Re:Idaho has made it easier for companies to enforce noncomp... by Consultant32452 on Monday July 17, 2017 @09:12AM (#14788150)
You made a baseless claim. I took the time to find data to back up your baseless claim, specifically stated I couldn't find any stats, and asked if you had any. You then responded, twice, with anecdotes. Why would I thank you if you weren't helpful? All you've done is spread baseless rumors which hurts the community.
Re:Idaho has made it easier for companies to enforce noncomp... by KirinDave on Monday July 17, 2017 @11:39AM (#14789532)
The reality of an easily verifiable situation is independent of your understanding or agreement with it. I'm unconcerned about convincing you because I've determined you're here in an anonymous capacity to defend no-competes.

I can't really figure out why you would. They only benefit very large organizations attempting to stifle competition and drive down skilled worker wages. Smaller companies can't really afford to consistently enforce them and lots of smaller companies use open moonlighting agreements and a lack of no-compete as a selling point.

But I also don't care. I am not obligated to convince you. Nor am I obligated to pay your little shufflepuck game that ultimately ends up with research behind a paywall you will refuse to follow.

This story: your tactic. It's not new. It's old. I've seen it done before, I've seen it executed better as well. There is nothing more telling than looking at an obvious example of abuse sourced off a reputable news site and saying, "But this is an anecdote and I wanted data."

I am sure you will post protestations about how unfair this is. And it is, somewhat. You bear the burden put upon all anonymous accounts before you. But to be honest, given your complete refusal to even google something and count the results makes me think you're actively defending this practice as opposed to genuinely curious.

Re:Idaho has made it easier for companies to enforce noncomp... by slaymaker1907 on Saturday July 15, 2017 @10:41PM (#14780204)
I think in cases like those, we as a community ought to work on nullifying such decisions by refusing to cooperate at all with them. An artist would refuse to surrender their art over such ridiculous nonsense so why shouldn't programmers?

In the artist metaphor, I also assume that it took a non-trivial amount of time, say a year.

Re:Idaho has made it easier for companies to enforce noncomp... by ScottBurson on Saturday July 15, 2017 @05:02PM (#14778917)
Compare the economic vibrancy of the Boston metro area (all the way out to Rte. 128) with the San Francisco Bay area (including Silicon Valley). Boston is a major educational hub, with some 250,000 students at a time at many universities and colleges including MIT and Harvard. And yet, the SF Bay area has left Boston in the dust when it comes to startup creation. There's nothing in Boston comparable to Apple, Google, or Facebook. And Boston was once a major hub of the computer industry, with Digital Equipment, Data General, and several smaller manufacturers -- that's all history now.

This is pretty strong empirical evidence that although enforceable noncompetes may be better for existing companies, they are a drag on the regional economy.

(Taking your current employer's clients is not exactly the same thing -- IANAL, but I would think that would be covered by the trade secret protections.)

Re:Idaho has made it easier for companies to enforce noncomp... by Clubber on Saturday July 15, 2017 @05:08PM (#14778955)
This sort of thing is absolutely, 100% these incumbent companies lobbying their governments to give them a short term economic benefit at the high cost to both employees of that company, employees that work in that local economy, taxpayers in that economy, and the local economy as a whole, and even that company themselves medium term. Who would want to work in Idaho after reading this?
Re:Idaho has made it easier for companies to enforce noncomp... by kafkaesq on Saturday July 15, 2017 @02:12PM (#14778045)
I still don't understand the almost violent resistance to noncompetes.

It's not "violent". It's the exact opposite of that, in fact.