I also got language put into my contract to specifically allow for some of my moonlighting activities that could possibly be seen as a conflict. Both wound up being useful when the company expanded and they attempted to enforce different rules on me. Because my contract said what it said, I was able to get the HR person to back-off and didn't have any fear when I did eventually leave for a competitor. And because of my moonlighting clause, I was able to have side-projects when other employees were often discouraged from doing the same thing (part of me felt bad for having different rules, but if I was capable of getting those clauses put in my contract when I was 24, others were too).
It is true that employees, especially lower-level employees, don't always have the leverage to change the contracts they sign (especially at larger companies), but I would personally never sign a non-compete unless there were very specific scenarios involved (i.e. it was either incredibly, incredibly narrow or the company would pay me while I waited out the non-compete), no matter what HR or the recruiter says. You don't need to be adversarial when discussing language or making changes -- most places are reasonable. And if a place isn't reasonable but refuses to remove non-compete language from a contract, even though they swear they will never exercise it, well, that's a giant red flag.
> It is true that employees, especially lower-level employees, don't always have the leverage to change the contracts they sign (especially at larger companies)
Confused, so do you think this is practical for people or no? There are only so many 3-person startups to go around that would change any terms for anybody...
This depends entirely on their terms, how many potential hires read and care about their terms, what sort of talent they are looking for, and how attractive the position is.
Sure it's a hassle for the 3-person startup, but I imagine this is much harder with Big Co. where the hiring manager may ask legal to make changes for a great potential hire and legal tells them to take a hike.
Exactly. 'That's great; we can resolve that issue easily. Let's just skip the non-compete - you're not using it anyway and I'm not comfortable with it.'
EDIT: A non-lawyer's suggestion (talk to a lawyer before you do this): Skip signing or edit documents (cross out and initial sections you don't like, add words - and initial each change) and then sign and send it back. Don't say a thing; leave it to them to bring it up - most people won't bother disputing it with you.
So if you decide to call our bluff in the future just know we won’t sue you…because we don’t have to sue, our agreement makes you waive your right to have the case heard by a court in lieu of mediation by a mediator of our choosing, from a mediation company we send all our cases to.
This really should be made explicitly illegal. It should not be possible for an individual to surrender the right to bring a dispute in front of the court.
And actually, who writes a significant part of new bills, some of which become laws? Yes, corps. It's not surprising then that the legal system has some extra benefits for the corporations.
I can't wait to have enough savings to quit and move to california where the employee protections are so much higher.
I feel like the symbol of the 2020s is Chesterton's Fence[1], people chafing against restrictions and then having to reinvent them. I'm sure that some people are indeed fleeing California, and will then immediately start reinventing it.
Not that that's necessarily a bad thing. The reinvention could be like a clean-sheet reimplementation that's better than maintaining a smelly old code base. But that only works if you know all of the reason those code smells are there, and don't simply re-start the same process to recreate the same bugs.
Please don't try to turn the non-compete issue into a california good-or-bad issue because it's just not a california thing.
Sure, you're getting away from the problem, but not because anyone there has a solution - just because they haven't been hit by the same problem to the same extent yet, because "sprawl outwards" works for a long time when you have less geographical boundaries.
People have many motives, including themselves, their communities, their businesses, their countries, their co-workers and neighbors, strangers on the street, etc. If they only acted selfishly, there would be no community, country, business, etc.
Any solutions to North America’s urban planning woes will take decades, if they happen at all. I don’t fault anyone who can’t wait that long.
I don't know how much the issue is with the rest of Silicon Valley. There used to be a lot of undeveloped area not too far from Palo Alto.
Texas may want to avoid the wrong kind of over-dense housing, since they've got plenty of land, though there are also reasons to encourage people not to commute multiple dozens of miles per day.
I'm going to push back on this. Manhattan is less than half the size of San Francisco and has nearly four times the population density. The Bronx is roughly the same size and has double the population density. It isn't that San Francisco can't expand, it is that it doesn't want to.
Subways[1].
Sure developers would love to build more chicken coops for tech bros. But they absolutely don't want to kick down coin to pay for the subway system needed to support that density.
[1] Oh yea SF has BART which was built 50 years ago and not expanded since. And the central subway which is 1.7 miles long, not open yet after ten years of construction and 20 years after it got the green light.
Now, it's trendy to view any investment by democratic government as wasteful, and to reduce the taxes by which the community makes that investment to nothing.
What will happen to future generations, who have us as their forbears rather than the visionary New Yorkers.
It was only later that all were merged into one publicly-managed one.
Well, yes. And deep bedrock and fairly stable geology that makes them possible.
Snippets I've read over the years seem to say that subway tunnels and deep foundations don't tend to fail in earthquakes because they to move with the ground around them. And because they are already structurally strong.
Basically the lack of mass transit to support higher density is because of lack of willingness to pay for it. Unwillingness to pay for public infrastructure is due American economic ideology. Not anything specific to San Francisco.
https://www.businessinsider.com.au/earthquake-expert-san-fra...
My actual lawyer's advice is that doing this can be viewed by a court as "fraud" if it looks like the intention was for the counter-party to miss the changes. It's their problem if they miss changes, but it's your problem if you used deception to cause them to miss it. This exact thing that you suggested is what he told me I shouldn't do if I want it to hold up in court.
I ended up signing a contract that said "cannot work for any customers, competitors, or suppliers for twelve months" of a global company that worked with every industry and most companies. I went the route of hiding my next jobs in LinkedIn after I left.
I did not at all suggest trying to cause them to miss the changes. I suggested (with the caveat of asking a lawyer), "Don't say a thing; leave it to them to bring it up". That's a common negotiating tactic, even in amateur or interpersonal negotiations. I'm not imaging they won't see it, I'm imagining they won't want to create problems for themselves by bringing it up.
As my lawyer put it, if the communication goes like this:
Employer: "Okay great! Just sign these and you can start."
Candidate: *edits documents*
Candidate: *signs documents*
Candidate: "Okay great! Here I've signed 'em. Can't wait to start!"
That _might_ be fraud, regardless of your intent. Because there was no reasonable expectation that there was any negotiation even going on in the first place where any changes could have been expected to have been made. It sounded like different courts might have different opinions on the matter, but he strongly recommended against it.
As long as there was some version of negotiation going on "hey here's the changed document feel free to sign it and get it back to me" then you don't really need to tell them every little thing that changed, if they miss something it'll be much more likely to still bind in court.
https://a16z.com/2014/02/06/why-i-did-not-go-to-jail/
More specifically to this exact discussion, see California Civil Code 3399:
> When, through fraud or a mutual mistake of the parties, or a mistake of one party, which the other at the time knew or suspected, a written contract does not truly express the intention of the parties, it may be revised on the application of a party aggrieved, so as to express that intention, so far as it can be done without prejudice to rights acquired by third persons, in good faith and for value.
This would allow an employer to seek reformation. It's not clear to me as a layperson if this reformation could apply retroactively or not.
Or this interpretation of the consequences of a recent case in Virginia: https://www.virginiabusinesslitigationlawyer.com/when-negoti...
The actual decision: https://www.virginiabusinesslitigationlawyer.com/wp-content/...
The facts of this case do not mirror exactly what we're talking about here, so I'm definitely not trying to give legal advice. Maybe this wouldn't apply -- reading through it, it's a bit more egregious than what we're talking about here.
Is providing legal information with authoritative sources in a thread like this somehow offensive?
(I've wised up personally, never try to do that myself again lol)
Contract with company is not contract with current management only. I don't know who will be there in 2 years in charge.
My current company was acquired by a bigger company like a year ago, fast forward one year - even bigger company is now owner of our parent company.
In a recent personal situation, it was obvious serious mistakes were being made and it was obvious what the solution was - painful, but certainly better than the alternative. However, we hadn't yet experienced the consequences, and predictably another other party railed at me for making things unnecessarily complicated.
Employees at businesses don't want to be seen as trouble-makers and have their offers rescinded.
A (manipulative) trick to negotiations is to put the other person in the position of being the trouble-maker.
FWIW you can try editing the contract, removing the NCC clause, or tacking on steep consideration for exercising the NCC (as well as hard limit on it).
If they never sued anyone and have no intention to, they don't need an NCC clause, strike it out and ask them to sigh the updated contract.
Now I'm mid-career, employers want to hire me for my experience.
If presented with a non-complete clause, I first strike it out, saying it isn't fair that you stop me working in my core area of expertise, when you're hiring me for exactly that reason.
If that gets refused, I instead add a clause that says any period where the non-compete is enforced will be paid at my full salary.
In practice, there ends up being a short discussion with HR, some thinking behind the scenes, and that clause is allowed. And when I eventually leave, the non-compete period ends up being waived.
I believe employment NCs should be illegal, but this is the minimum standard a non compete should require to be legal. The fact that companies can essentially force you to stop working for years, without paying, is ridiculous in my opinion.
It doesn't matter what they believe, because a company does not have the same consistency of goals and actions as a person, and even a person can't be entirely trusted on things (even family sometimes turns on each other if the circumstances are sure enough). A company? Their entire board and management might change over time, or they might be bought out and have another entity with different goals.
Put another way, when considering and NDA during hiring, you should consider whether you would work for Oracle under the same NDA. Because what would happen if Oracle bought (or bought a controlling interest) in that company tomorrow? Do you still think you could go on past behavior with regard to legal action?
This is the exact same with privacy, and that's where I usually bring this up. It doesn't matter that I think Google is unlikely to do anything bad with the private info they have about me right now. I'm more worried about the Google (or whoever ends up with the data) five, ten or fifteen years from now.
I feel like I'm yelling at a brick wall when I make a fuss of this, but this happens every time I see a doctor too. I'm asked to sign forms acknowledging I've read and understood long legal documents that they don't have a copy of to show me.
"It doesn't matter". Well I can't see the doctor without signing it. It only matters if they don't get their way. The same is true of the non-compete: it's because it only benefits them.
Our little sub-$1million startup was selling devices that competed with devices from a bunch of mega players like Dell, IBM and Amazon. Who's left to work for if you can't work for anyone who competes with Amazon?
Even working a retail job would violate this agreement, as that is a market their competitors are in (despite it having no relation to cloud tooling!)
For me, I have basically the same thing, but when I brought that up they straight up told me it'd be non-enforcable for the most part [1], along with that they put it there, because they had some people who started there just to get access to some expensive training, then left for a competitor/started their own company.
[1] which is actually the case
According to the California Business and Professions Code Section 16600, “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” In other words, non-compete agreements are not enforceable in California.
Great answer BTW!
I'm in a US state that allows non-competes. I recently turned down a job because I wasn't comfortable with the non-compete I was compelled to sign expressly because the company's opinion of its own market was so broad. They implored me to trust that they had "never sued anyone" and "have no intentions to", and I think they honestly believe that. But then why have the non-compete at all?
And even if they are true to their word, what happens when they sell the company to someone else that exploits the leverage the non-compete provides?
A friend of mine was sued by their ex-employer over the violation of a non-compete. He lawyered up and fought it. And he won! But it was a Pyrrhic victory that resulted in a significant expensive of time (the judge granted an injunction that forced him out of business until the case was resolved - which was around 18 months) and money (he was granted no financial judgement). I am convinced the plaintiff's lawyer knew they'd lose, but to the suing party the process was punishment and that became their goal.
His should be a cautionary tale - even if you're advised that the non-compete isn't enforceable, it can still hurt you.