I think the Chinese law is effective in this regard: in order to maintain any non-competition agreement, the company must continue to pay you a monthly compensation amount equal to 30% of your total monthly income when you were at the company. Whenever the payment stops, the non-competition agreement is automatically void.
marcosdumay 4 hours ago [-]
Or the Brazilian law, that requires 100% compensation, and puts the onus on the company to prove that the non-compete is necessary before it can be enforced.
If you ever see one of those contracts here, it's usually usually for a very reasonable situation and a well paid position.
benjamincburns 40 minutes ago [-]
I generally ask for 150% - usually on the expectation that it’ll make the non-compete go away.
It’s not at all a ridiculous ask, either. I’ve made a career out of going after high-impact roles in whatever is the fastest growing area of technology at the time. The non-compete isn’t just asking me to sacrifice the income from my next role, it’s asking me to sacrifice the experience as well. It also limits my ability to renegotiate comp while on the job, because they know your BATNA isn’t to just go get a better offer from a competitor.
If a company wants me to give all of that up, I’m sure as shit not doing it just for the privilege of working for them.
schmichael 1 hours ago [-]
Oregon at least makes it 50% IIRC. Anything less than 100% seems useless though. Usually when taking a new job in the same industry you expect a pay bump, so even a 100% rate is likely leaving money on the table.
44 minutes ago [-]
Sharlin 24 minutes ago [-]
Well, yes, but you don't have to work.
jjallen 34 minutes ago [-]
Then the employee is only making 30% and presumably not working elsewhere or that would defeat the purpose. So how is this a good approach? I would get 80% or more but don’t see how this is effective.
helpfulclippy 23 minutes ago [-]
This is the first I’ve heard of this so I’m just rolling it around… but I suppose this would make it cost-prohibitive for companies to insist on non-competes unnecessarily.
As the employee, it’s still clearly a bad position for me unless I can find a non-competing job that pays me at least 70% plus whatever pay bump I’d expect for career advancement.
scarby2 11 minutes ago [-]
> unless I can find a non-competing job that pays me at least 70% plus whatever pay bump I’d expect for career advancement.
This clearly depends on your role and industry. I can write code in a bunch of industries I've actually never had 2 jobs in the same industry. If I were an oil pipeline engineer it would be different.
aforwardslash 2 hours ago [-]
In Portugal is generically the same - non-compete clauses require the payment of a monthly compensation for the duration of the non-compete clause; If non-compete clause exists, but no specific compensation is specified in the contract, the employee may demand the full salary during the specified period (I know at least one case).
v5v3 2 hours ago [-]
That's a terrible law.
30% of your total monthly income as it was, when you are likely leaving for more money at a competitor or to start your own company...
taneq 2 hours ago [-]
So do it four times and retire.
Hmm… in four different industries, though… Yeah okay there might be some issues.
onion2k 3 hours ago [-]
Imagine if Tesla had been able to stop Andrej Karpathy working at Open AI just by spending 1/3 of what his salary was when he was on Autopilot. That sounds like a terrible idea.
idkfasayer 45 minutes ago [-]
[dead]
coderatlarge 4 hours ago [-]
can you choose to refuse these payments to avoid the responsibility?
whiplash451 4 hours ago [-]
I’ve seen this is France and UK but it lasts only a few months and no you can’t refuse the payment - but the company can refuse to pay and set you free.
v5v3 2 hours ago [-]
In UK it's called gardening leave. A period when you are still employed but not at work and can't join another company without agreement.
Uk law generally is that non compete clause is ok, if the length of time is reasonable. But you can't stop a person with a trade from applying that trade unreasonably.
Most tend to be 3-6 months.
Normally it's to stop a person leaving from stealing clients.
kelnos 30 minutes ago [-]
US finance has the same thing, and also calls it gardening leave. In our case I think it's reasonably common for it to be as long as a year.
Downside for finance folks is that the usually make a decent chunk of their compensation through bonuses, not their base salary. So their gardening-leave pay ends up being quite a pay cut, and while they're "gardening", they're out of the game for a year and their skills/knowledge becomes a little out of date.
hmottestad 4 hours ago [-]
Would be very interested to read more about that. Do you have a link?
timoth3y 3 hours ago [-]
Non-competes (including stealth non-competes like the OP mentioned) are being abused by US employers seeking leverage over their employees.
In fact, 12% of hourly workers earning $20 or less had to sign non-competes. These workers do not have access to corporate secrets. It simply reduces their power to negotiate with their employer.
Australia is straight up banning non competes for anyone earning under $175k, for this reason.
They are also tightening up the contract law around non competes to reduce the impact of the scare tactics employers have been using to bind low level employees with unenforceable, but still litigable, contract terms.
And scare tactics are really all they are (in this country), because even before they do this the courts have a track record in this country of looking very dimly on overly broad or restrictive non compete 'agreements'.
aforwardslash 2 hours ago [-]
Not only in the US; without going into too much detail, many countries in south America and Africa have strong business connections with the US, and it is quite common to see the ever-abusive dumb dumb US contract templates being used in those countries, even when local law differs significantly. Usually, the posture is "we can do whatever you want and you keep your mouth shut, or else we'll sue you for everything". I loathe organizations with these kind of contracts.
bobbruno 1 hours ago [-]
If the law has specific clauses about this that the contract disrespects, these conditions are not worth the paper they are written on.
At least in Brazil you can't enforce something the law doesn't allow in a contract - that clause would be considered void without nullifying the contract. And Labour law in Brazil leans (or used to lean) more in favor of the employee,so yes, the law would win. Another aspect there is that unions are more common than in the US, and they will help in such cases.
thfuran 52 minutes ago [-]
>If the law has specific clauses about this that the contract disrespects, these conditions are not worth the paper they are written on
Unless the law also has severe penalty for including such terms, of course they are. They don't need to dissuade 100% of people from breaking 100% of the terms to be of use to the company.
aforwardslash 2 hours ago [-]
On a personal note, I once was presented with such a (US) contract that also required me to list every NDA I had signed to date; Since then, I always assume most US lawyers are beyond incompetent.
kirubakaran 6 hours ago [-]
It's funny how states like Washington are notorious for enforceable non-competes, to be "business friendly".
Meanwhile California bans non-competes, and its GDP is 4th largest in the world if it were a country!
"incumbent friendly" vs "startup friendly"
thedufer 5 hours ago [-]
I'm not sure what conclusions you think we should draw from that. California's advantage over Washington is primarily one of size - Washington's GDP per capita is actually about 3% higher than California's. The most generous interpretation I can think of is that you're crediting the non-compete difference for California's far larger population, which is tenuous at best.
kirubakaran 4 hours ago [-]
Shockley -> Fairchild -> Intel, AMD couldn't have happened with non-compete. So Silicon Valley couldn't have happened in Washington.
Per capita isn't a good measure here, as Washington's weather helps lower the denominator (I say this as a former Seattle resident)
coderatlarge 4 hours ago [-]
WA is busy losing its way on taxation vs value provided for taxes paid and reporting burden. so imo these IP issues are almost second order effects at this point. i personally expect a continued exodus over some of the latest tax hikes for example taxing cap gains beyond a certain amount at an additional 7%. as if niit was not bad enough. if residents could at least see some value from these added taxes maybe it could be something. also the estste tax there kicks in quickly and has hidden gotchas even for people who no longer live there.
treve 2 hours ago [-]
One is friendly to existing wealth and the other to innovation and disruption I suppose.
bufferoverflow 3 hours ago [-]
[dead]
llm_nerd 6 hours ago [-]
I'm pro-California and anti-noncompetes, but I'm not sure if this evidence demonstrates much. The banning of non-competes in California is a very recent thing, and if we're doing a correlation thing, California saw the vast bulk of its growth when non-competes were in effect.
California has banned non competes since 1872. You might be thinking about non solicits which was 2024 also reaffirming the ban on non competes
karthikb 5 hours ago [-]
The Traitorous Eight would only have been possible in California, not Washington, because of the position on noncompetes.
ghaff 3 hours ago [-]
On the other hand, moving between (and founding) minicomputer companies was a thing for a long time in spite of Massachusetts being fairly non-compete clause friendly until very recently. And arguably, current laws enacted against some fairly strenuous tech company opposition force companies to put some skin in the game but are still a pretty raw deal for employees who can't afford to sit on the bench for 50% of their former base. (Which is what I think relatively recent legislation calls for.)
I'm against non-competes except in narrow cases. But a lot of people probably give the general inability to enforce non-competes in California too much credit for CA tech success in spite of one story in particular.
tgsovlerkhgsel 5 hours ago [-]
OTOH, beware letting yourself be intimidated by scary looking but unenforcable clauses that are all over contracts. In doubt, spend a bit of money on a lawyer to figure out what your real situation is.
I know of several cases where lawyers said "don't bother arguing with them about clause X, just sign it and ignore it".
BobbyTables2 3 hours ago [-]
I suspect our primary school upbringing of “follow the rules” holds a lot of people back.
Seems like a lot of successful people in business know exactly how far they can step over the line without suffering serious consequences.
thfuran 47 minutes ago [-]
Societies where no one has any regard for rules aren't great either.
inetknght 31 minutes ago [-]
You can't make billions of dollars by following rules...
voidfunc 3 hours ago [-]
This is pretty much the advice every lawyer has given me in the past. The likelihood of it coming up is very low. Sometimes it's good to not be special.
ghaff 3 hours ago [-]
The one time I had to sign a non-compete--because my company was acquired--I just signed it because it was quite specific and I wasn't going to be an exec of a storage company anytime soon. Probably didn't matter much because I left a few months later anyway.
dimitry12 2 hours ago [-]
What are the keywords for finding a lawyer who can advise on non-competes?
Asking because it turned out nearly impossible to find a local lawyer to advise on a dispute couple months ago - with 9 out of 10 telling me they only do divorces or real estate or immigration. I was literally calling one by one from a list based on what I believe were relevant search criteria on State Bar website.
I had them recommended to me. I have used them and was pleased.
PaulHoule 3 hours ago [-]
I had a non-compete cause in a contract, I wound up in a dispute over unemployment insurance and the contract came up, the judge told me that the non-complete cause didn't make any sense at all but that's because it was poorly written.
matsemann 5 hours ago [-]
So happy my union managed to ban broad non-competes in my country ~8 years ago. Now it needs to be very specific if they want to enforce it (not just "development work in the same industry" which most contracts had back when I graduated), only applicable for maximum a year, and they have to pay your salary for the time they stop you working somewhere else.
autobodie 5 hours ago [-]
[flagged]
mitthrowaway2 4 hours ago [-]
How is a union any different in that respect than a corporation? I mean on a theoretical level. A true free-market firm would just be an association of individuals making individually negotiated transactions, with no employee-employer relationship, and no coordination on the side of purchasing labor. Of course that's very inefficient outside of pure theory. A corporation acts as a coordinating body that collectively negotiates the purchasing of labor contracts, and a union collectively negotiates on the selling side.
superb_dev 4 hours ago [-]
I don't care about the free market, I just want food and shelter for my family.
theoreticalmal 4 hours ago [-]
Sounds like the union negotiated a heck of a deal for the parent poster
arunabha 4 hours ago [-]
Care to back up that definitive statement? Or is it just a pavlovian reflex?
throwaway173738 4 hours ago [-]
So are corporations.
gwbas1c 5 hours ago [-]
I once declined a job offer because the non-compete made no sense. (It was many pages, claimed that I would be paid during the non-compete period, and impossible to read.) I basically concluded that they (the company) had a lawyer that was basically wanking off.
senkora 5 hours ago [-]
In finance, it is common to be paid your base wage during your non-compete. Or at least that is how mine worked.
yborg 2 hours ago [-]
Since a huge chunk of comp in finance is bonus, especially if you're a rainmaker, I don't see how this is a win.
dylan604 3 hours ago [-]
That seems like something ripe for being gamed. How do they protect from someone just quitting and continuing to get paid?
thw09j9m 3 hours ago [-]
They're not obligated to enforce the non-compete. If you don't have any sensitive information to take to a competitor, they might not give you any garden leave.
OTOH, I've seen non-competes as long as 2.5 years from places like Citadel.
kccqzy 41 minutes ago [-]
What's worse is actually those non-competes with a variable period. The company doesn't have to tell you in advance how long it will be; only when you hand in your resignation letter will they tell you. It entirely serves to make your job hunt more difficult.
paxys 4 hours ago [-]
Yup, garden leave.
sim7c00 5 hours ago [-]
sounds crazy. in my country, adding anything that prevents you from finding work in the future to a contract is kind of invalid.
you do get non competes etc., but it never holds up in court as you can easily prove it prevents you from finding jobs.
i wish for you in your legislation there might be a similar law, otherwise these things are really evil. i mean, its like prison in some fields niche enough, and those are exactly the fields prone to such overly protective clauses
anilakar 5 hours ago [-]
> adding anything that prevents you from finding work in the future to a contract is kind of invalid.
Here it's six months top, and it only applies to management and specialists with critical domain knowledge - and this also has to be reflected in their wage.
dakiol 5 hours ago [-]
In some countries that's illegal. So when presented with a contract that contains such claims, I have 2 options:
1) ask them to remove it... and so I risk not getting the job
2) don't say anything, and sign it
If I'm really interested in the job, I'll go for option 2 because I know they cannot enforce such claims, so I'll be fine.
coderatlarge 4 hours ago [-]
i personally consider bad legal clauses in employment contracts a seriously negative sign about the employer. if they’re trying to pull that sort of thing at hiring, what are they going to try to do later when you’re fully committed?? is executive leadership simply unaware or do they condone that sort of thing??
mystified5016 3 hours ago [-]
Well, yes. That's how we do business in the USA. It's literally unavoidable unless you can afford to spend a year or three declining offers until you find a unicorn with a sane contract.
Approximately all businesses explictly try to exploit workers to the full extent of the law. That's what capitalism is and it's how we've structured our society.
coderatlarge 2 hours ago [-]
social media shaming has worked in a few high profile companies like openai recently. especially when founders are still around and feel some personal culpability when their company’s values are on display.
but i think your broader societal point stands though. especially with horrible language in vendor contracts that people click through because who has time for that garbage. i hope llms will help people push back in somewhat more concerted and systematic fashion.
luke5441 2 hours ago [-]
Having probably signed such a contract, how do I find out if it is enforcable?
Probably talk to a lawyer, but how do you find one that gives you a straight, but correct, answer to such a complex topic. For me it is even more complex since I'm a fake employee (contractor) in another country working for a US company.
The answer to those questions might be really unsatisfying in practice, since it breaks down to a cost calculation by the sueing company (if the company leadership is rational). So in case you get sued you have to fight defensively and bleed them enough so they give up or something.
Esophagus4 1 hours ago [-]
[not legal advice]
Having talked to lawyers about this sort of case, be prepared to speak to several to find a match, or read between the lines - when you ask questions like, “If I break this clause, what sorts of liabilities am I exposing myself to, and how often in your experience does that happen?” Be prepared for, “as my client, I don’t advise you to do that.” Not super helpful in my case, as I was trying to understand the possible outcomes and likelihoods.
The best advice I got was from a business mentor which was, “if you don’t rub it in their face, they probably won’t notice, and probably won’t care.”
Which is, as you mentioned, a probability calculation.
What I would personally guess [not legal advice] is that you rate the likelihood of your employer suing higher than they do (absent anything egregious).
epolanski 3 hours ago [-]
The fact that something isn't enforceable does not mean it won't be a giant headache to prove it in a court in a foreign country.
almosthere 4 hours ago [-]
New definition for the word Irony:
AI companies protecting their IP.
airocker 29 minutes ago [-]
So if you are against this, you are okay with Coca Cola’s secret to be divulged by any employee to any competitor? If you cannot let companies maintain trade secrets, you may as well close them down.
sircastor 17 minutes ago [-]
This implies that any employee at Coca Cola knows and has access to the secret formula, which is of course, not true. And even if it were true, there's a substantial difference between a specific, limited piece of information (such as the recipe for Coca Cola) and broad concepts about operating in an industry.
I work in the Robotics industry. While the algorithm for our path planning would be a trade secret, how path planning is pursued is not. It's a fundamental concept in robotics. To extend the metaphor, it would be as if my company thought that any robotics work that involved path planning would violate their IP, because I did path planning work with them. It's nuanced to be sure, but some companies are very aggressive as to prevent you from having mobility in your career. Sometimes in a genuine effort to protect their IP, but also sometimes to reduce your negotiating power or punish you.
airocker 26 minutes ago [-]
There is a difference between trade secrets and non compete. If you can compete with the company without using trade secrets, like make a drink that people like without using Coca Cola secret, it is fine.
93po 26 minutes ago [-]
as far as i can tell there are a million sodas that are extremely close to coca cola and coca cola is still doing just fine
sircastor 15 minutes ago [-]
Getting off topic, there's an interesting This American Life story about the Coca Cola formula, and why there are many extremely close formulas, but no exact replicas.
I think if the extremely close replicas ever threatened Coke's existence, they would sue. Especially if a former employee started it. I think trade secret protection is the only thing that enables a company to operate. Especially small companies, otherwise only large companies can operate. Any employee with a rich uncle can finish the small company off without this protection.
airocker 25 minutes ago [-]
That’s my whole point. They are not using Coke’s formula
harimau777 42 seconds ago [-]
But they are using functionally equivalent formulas and Coke is still fine.
josephcsible 3 hours ago [-]
I wish "inevitable disclosure" were totally turned on its head. If I were in charge, proving inevitable disclosure would happen would result in nullifying the NDA instead.
amatecha 39 minutes ago [-]
Right, as in "I literally cannot comply with this"? Makes sense.
kelnos 29 minutes ago [-]
So tired of this garbage. I think non-competes (and the legal concept of inevitable disclosure) should just be banned completely. Sure, some things (like taking customer lists when you leave a company) are messed up and should be barred, but companies should just be required to accept the fact that their employees will take some "proprietary" knowledge/information with them to their next job.
I don't even think that non-competes should be allowed for higher level employees/executives. Everyone deserves the right to change jobs whenever they want to.
sircastor 6 minutes ago [-]
> Sure, some things (like taking customer lists when you leave a company) are messed up and should be barred
Is it messed up? If you're a salesperson, and you've built the relationships with these customers is their loyalty to you, or to the company that you worked for? I had a personal trainer for a little while and he took all his clients to a new gym when he decided to contract with a different gym.
I don't know the answer to this. But it doesn't seem as clear cut to me.
btilly 5 hours ago [-]
This is a state level thing. As is whether IP produced outside of your job, on your own equipment, is yours.
I moved from New York to California a bit over 20 years ago in large part because I personally encountered this (the IP ownership bit), and preferred to live under California's rules.
It is worthwhile to read https://www.paulgraham.com/america.html. Point 7 talks about how easy it is for regulations to accidentally squash startups. I believe that the fact that California makes neither mistake causes us squash fewer startups. It is not sufficient to have made Silicon Valley a startup hub, but it was likely necessary.
arnonejoe 3 hours ago [-]
I usually add this at the end of the agreement and if they wont go for it, I move on:
This agreement shall not apply to any inventions, conceptions, discoveries, improvements, and original works of authorship that [my name] developed entirely on their own time without using [the employer](s) equipment, supplies, facilities, trade secret information, or anything not based on or received from [the employer].
I would love to hear whatever you’re comfortable sharing of your (anonymized) story, if you’re up for it!
throwarayes 5 hours ago [-]
It also depends on the laws governing your contract, not just where you live.
ww520 2 hours ago [-]
Not just employment contracts, some companies require NDA just for interviews.
ivan_gammel 5 hours ago [-]
If I understand it right, those NDAs work as non-competes if “confidential” is defined as restricted just on the basis of some relationship to the business, which is pretty weird attack of legalese on common sense. Let’s say I used some relatively simple chain of thought to derive X about my job at Z. The fact that Z uses or does X is probably confidential, and that’s ok. This would be how I understood a broad definition. But what kind of reasoning would conclude that X is confidential per se, preventing me to use or do X elsewhere, effectively making doing my job impossible? It just doesn’t make sense.
secondcoming 5 hours ago [-]
A few years ago an American company that approached me (UK based) about a job opportunity insisted I sign an NDA before I could interview with them. I refused and they couldn't understand why so they even put me in contact with one of their lawyers. I still refused, and they eventually relented, but I could never understand why I'd need to sign an NDA to attend a job interview. There's literally no benefit to me in doing so.
At the time I was working for a competitor and I figured they could use the fact that I interviewed with them to argue that I - either intentionally or unintentionally - gained proprietary knowledge of their product and my current employer gained from it.
exe34 5 hours ago [-]
> They argue it would be impossible for you to work elsewhere in this industry during your entire career without violating confidentiality with the technical and business instincts you bring to that domain
In that case you need to ask for a lifetime worth of salary, including growth from being in position to be put in escrow before you sign the dotted line. Otherwise they can hire you and fire you immediately and you'd never be able to work in your field that you spent years/decades training for.
lazide 5 hours ago [-]
Realistically, most places ban ‘unconscionable’ contract clauses, either explicitly or by making them unenforceable.
At least in theory, any judge that saw clauses like that should throw it out for that reason alone in those jurisdictions.
duskwuff 4 hours ago [-]
Precisely. And, at least in the US, any contract which makes it impossible for a worker to take a new job in their field is extremely likely to be found unconscionable. It doesn't matter whether the contract is cast as a non-compete or as a NDA; if its effect is to say "you must work for us, or not at all", it's unlikely to hold up.
ghaff 3 hours ago [-]
Maybe. I've known companies in the IT industry that took a very hard line on non-competes. Whether they won in court, I don't know. But I've know people who took a year off rather than involving the lawyers. Small pretty well-defined segment of the industry and a couple of the big players apparently did take it seriously. (Never worked for either.)
lazide 1 hours ago [-]
Just because the employer ‘takes it seriously’ doesn’t mean the court won’t laugh at them.
In my experience, the more the employer puts up a show, the more unenforceable it is.
ghaff 1 hours ago [-]
As I say, no personal experience. But people I know took fairly serious actions because of the threat.
awaymazdacx5 1 hours ago [-]
once you're - in you're in. we found we were bound like rats.
tptacek 2 hours ago [-]
For what it's worth, a noncompete that makes it effectively impossible for you to apply your profession anywhere for your entire career is unlikely to be enforceable in any state in the country.
Companies that are serious about noncompetes for professionals (rather than hourly shift workers) generally do garden leave. I'd take a noncompete for a garden leave company seriously, and would maybe roll my eyes at a broad noncompete from a random tech firm.
(Don't sign anything you're not comfortable with.)
sgt101 4 hours ago [-]
Has anyone been caught by this? As in sued or prevented from working?
viapivov 4 hours ago [-]
Like.. has anyone been sued for the violation of the non compete?
v5v3 2 hours ago [-]
What happend to you?
neuroelectron 2 hours ago [-]
Too bad. I routinely reapply the exact same business logic across competitors. I even have proprietary source code collections I use for reference. If you don't like it, write your own software. Business methods are literally unpatentable.
If you're not copying internal wikis, and poaching customers what are you even doing?
OutOfHere 6 hours ago [-]
What exactly should one be on the lookout for? Practically every company has an IP confidentiality agreement.
Traubenfuchs 6 hours ago [-]
Yeah, good luck being the odd one out who wants special individualized contract. This might work for unicorn value level employees that are poached from one FANG to another but not for the average Joe.
mapmap 4 hours ago [-]
In my experience, as a normal non-unicorn employee at a large corp, I was able to have my contract modified. It required advice from an employment law lawyer that cost a few hundred dollars and a couple emails with the company’s general counsel.
You can change these contracts. Hiring people is difficult and once the company has made that decision they don’t want to lose you over a contract clause.
kragen 3 hours ago [-]
As an average Joe, I was able to negotiate employment contract changes every place I worked in the tech industry in California in the early 02000s. I don't remember having been faced with contract clauses that I felt needed alteration as an entry-level tech employee in the 01990s.
lovich 3 hours ago [-]
If you are negotiating terms you are not an average Joe. Average Joe’s don’t even interact with people capable of requesting someone higher up to approve the change. Average Joe’s get given a take it or leave it deal
OutOfHere 1 hours ago [-]
It's worse than that for the average Joe. The offer can be rescinded altogether if one raises too many concerns about the offer.
kragen 2 hours ago [-]
You evidently have no idea what you're talking about.
OtomotO 3 hours ago [-]
I had every single one of all my contracts (as employee and one-nerd-business) adapted in minor or major ways.
I am good at what I do, but no unicorn and not FANG "level".
But then again, I don't live in the US
OutOfHere 6 hours ago [-]
I never said I want an individualized contract, but I reserve the right to reject the offer, and I have, when the contract is unreasonable. What I want to know is when exactly to reject it wrt the confidentiality agreement.
dboreham 5 hours ago [-]
ianal but: don't perform personal work while you are employed by an employer in the same industry. Or at least make it like you didn't do that to any observer.
kragen 3 hours ago [-]
You may have misunderstood the topic, which, I'll remind you, is confidentiality agreements that act as lifetime non-competes, which means for the rest of your life after you are employed by an employer in the same industry, not while you are employed by an employer in the same industry.
transactional 8 hours ago [-]
...but are they enforceable?
prerok 5 hours ago [-]
IANAL and I don't know about other countries, but in EU (definitely the country I live in and am pretty sure it goes for the rest as well) any non-compete agreement after two years is void by law.
You are required to hold confidential stuff for life, like business contracts, but you can use your know-how, if it does not violate any patents, in a competing company as you see fit. This knowledge is a part of you and cannot hold you against employment. Even if you do decide within those two years to employ yourself in competing company, this can be held back by your original company only if they give you X% of your pay at them (X can be 80, or as low as 50, as my friends inform me).
ghaff 2 hours ago [-]
I've actually dealt with this in third-party IP cases I've consulted on. Of course a lot of "bench advice" best practices (use a debugger as a silly example) shouldn't cause a problem--or maybe even some various specific experiences about practices that worked. A file dump of corporate strategy and business plan presentations or code--even if they probably get pretty stale after a few years--probably not.
jauntywundrkind 6 hours ago [-]
To riff Keynes,
Enforcement can maintain litigation longer than you can maintain solvency.
teeray 3 hours ago [-]
And that’s our judicial system: whoever has more ability to sustain prolonged cash flow wins.
throwarayes 8 hours ago [-]
So far it seems maybe?, but according to the article some courts and agencies are pushing back. Well the FTC was at least in 2023.
California bans anything that is effectively a non compete.
epolanski 7 hours ago [-]
Well since OP's giving that warning he might've been impacted and could tell us more.
codingdave 7 hours ago [-]
I didn't see any references in the article you linked to any cases where it had been enforced. I see a lot of commentary that validates the concern, and a listing of half a dozen states where they are being struck down.
So the callout to be wary of them is totally legit... but it doesn't look like they are going to be enforceable when such things go through the courts.
throwarayes 7 hours ago [-]
Yeah the warning is: you may, like me, find a litigious paranoid former employer who freaks out at everything :-/
I’d rather not carry the cost of learning it’s not enforceable.
ryandrake 6 hours ago [-]
Technically, maybe, but effectively, nobody is going to be able to withstand BigCorp's 100 lawyers whose mission is to bury you in legal fees if you push back. By the time that you confirm these things are unenforceable, you've spent your life savings on $millions in legal fees, and possibly gone into crippling debt. In the legal system, might (wealth + lawyer quantity) makes right.
eirikbakke 5 hours ago [-]
As I recall from John Akula's Corporate Law class, judges in the US tend to be sympathetic to the following argument:
"Defendant has never worked in any other industry. He has three kids. He's gotta work."
(That's for regular employees--it's a different issue with founders who may have significant equity stake and such.)
gopher_space 4 hours ago [-]
It sounds like moving to California for a year would be way cheaper.
ghaff 2 hours ago [-]
You'll probably still end up in court even if the plaintiff will likely lose. Maybe cheaper, maybe not.
cyberax 5 hours ago [-]
The "bury in litigation" is overstated. Since it's the _company_ that is going to sue you, there's a limited amount of shenanigans they can do.
The worst is that they can delay the case for years, leaving you in a legal limbo. Or go after your employer, involving them in the discovery process.
stego-tech 5 hours ago [-]
Have an employment attorney always look over said agreements before signing. A local acquaintance who did work for an MSP had said MSP try such a ploy, only for the employment attorney to sue and get it thrown out as unreasonable and unenforceable.
Never, EVER sign a contract without reading it first, and having your lawyer review it.
TrackerFF 5 hours ago [-]
I understand that your advice is in good faith - but if we touch grass for a second, only the tiniest fraction of even professional workers have a lawyer at hand. And one that specializes in contract law? Even less.
mapmap 4 hours ago [-]
It’s not that difficult to have legal help with your contract. Call your local bar association and ask for an employment law specialist. It will likely cost a couple hundred for them to review your contract.
inetknght 1 hours ago [-]
> It’s not that difficult to have legal help with your contract.
It's difficult to have legal help with your contract responsive within the timeframe that you have available for signing it before the business rescinds their offer and moves on.
2 hours ago [-]
stego-tech 3 hours ago [-]
I understand that your advice is in good faith - but if we touch grass for a second, we can easily find recommendations for employment law attorneys who work at very reasonable rates with fast (sub-1wk) turnaround times.
Because that’s how I found mine. $200 later, and I had total confidence in what I was signing and a lawyer on my side if things went pear-shaped in the future.
iLoveOncall 5 hours ago [-]
> your lawyer
That presupposes that people have a lawyer, and one specialized in employment law at that, which is highly unlikely to be the case for 99% of the population.
kragen 3 hours ago [-]
We're talking about negotiating a contract with a value on the order of a million dollars (say, US$200k total compensation per year for five years). Even if you don't have a lawyer normally, it may be worth the few hundred dollars it costs to hire one for this purpose, unless you have no savings.
I never did, though. I just crossed out the clauses I didn't want to accept and initialed them.
inetknght 1 hours ago [-]
> I just crossed out the clauses I didn't want to accept and initialed them.
Places like Zoho or Verisign don't let you do that.
throwaway173738 4 hours ago [-]
Sometimes general employment law is not enough and you need someone who specializes in executive contracts for upper management.
stego-tech 3 hours ago [-]
A good employment law lawyer is A) not at all hard to find in major metros, B) charges reasonable rates for quick turnaround times, and C) is something more people need to have on their side in general, rather than elevating them as some snooty thing only the elite have.
This whole “bUt WhO hAs A lAwYeR” nonsense I’m being blasted with in my comments is exactly why these sorts of contracts, grifts, and scams are allowed to exist and succeed.
Know your rights, get a lawyer, and then share that knowledge with others. It’s Organizing 101 stuff.
ghaff 3 hours ago [-]
Yeah, as far as I know, I've never needed one (aside from very routine real estate) but I've had to get a couple lawyers recently for different purposes--through my neighbor. I know lawyers but not in the field I need. Sort of a PITA but just something you need to do sometimes.
If you ever see one of those contracts here, it's usually usually for a very reasonable situation and a well paid position.
It’s not at all a ridiculous ask, either. I’ve made a career out of going after high-impact roles in whatever is the fastest growing area of technology at the time. The non-compete isn’t just asking me to sacrifice the income from my next role, it’s asking me to sacrifice the experience as well. It also limits my ability to renegotiate comp while on the job, because they know your BATNA isn’t to just go get a better offer from a competitor.
If a company wants me to give all of that up, I’m sure as shit not doing it just for the privilege of working for them.
As the employee, it’s still clearly a bad position for me unless I can find a non-competing job that pays me at least 70% plus whatever pay bump I’d expect for career advancement.
This clearly depends on your role and industry. I can write code in a bunch of industries I've actually never had 2 jobs in the same industry. If I were an oil pipeline engineer it would be different.
30% of your total monthly income as it was, when you are likely leaving for more money at a competitor or to start your own company...
Hmm… in four different industries, though… Yeah okay there might be some issues.
Uk law generally is that non compete clause is ok, if the length of time is reasonable. But you can't stop a person with a trade from applying that trade unreasonably.
Most tend to be 3-6 months.
Normally it's to stop a person leaving from stealing clients.
Downside for finance folks is that the usually make a decent chunk of their compensation through bonuses, not their base salary. So their gardening-leave pay ends up being quite a pay cut, and while they're "gardening", they're out of the game for a year and their skills/knowledge becomes a little out of date.
In fact, 12% of hourly workers earning $20 or less had to sign non-competes. These workers do not have access to corporate secrets. It simply reduces their power to negotiate with their employer.
https://www.minneapolisfed.org/article/2021/non-compete-cont...
They are also tightening up the contract law around non competes to reduce the impact of the scare tactics employers have been using to bind low level employees with unenforceable, but still litigable, contract terms.
And scare tactics are really all they are (in this country), because even before they do this the courts have a track record in this country of looking very dimly on overly broad or restrictive non compete 'agreements'.
At least in Brazil you can't enforce something the law doesn't allow in a contract - that clause would be considered void without nullifying the contract. And Labour law in Brazil leans (or used to lean) more in favor of the employee,so yes, the law would win. Another aspect there is that unions are more common than in the US, and they will help in such cases.
Unless the law also has severe penalty for including such terms, of course they are. They don't need to dissuade 100% of people from breaking 100% of the terms to be of use to the company.
Meanwhile California bans non-competes, and its GDP is 4th largest in the world if it were a country!
"incumbent friendly" vs "startup friendly"
https://en.wikipedia.org/wiki/Traitorous_eight
Per capita isn't a good measure here, as Washington's weather helps lower the denominator (I say this as a former Seattle resident)
Some form of a ban on noncompete enforcement in CA has existed since then.
It has long been codified in CA business code 16600, https://leginfo.legislature.ca.gov/faces/codes_displaySectio...
I'm against non-competes except in narrow cases. But a lot of people probably give the general inability to enforce non-competes in California too much credit for CA tech success in spite of one story in particular.
I know of several cases where lawyers said "don't bother arguing with them about clause X, just sign it and ignore it".
Seems like a lot of successful people in business know exactly how far they can step over the line without suffering serious consequences.
Asking because it turned out nearly impossible to find a local lawyer to advise on a dispute couple months ago - with 9 out of 10 telling me they only do divorces or real estate or immigration. I was literally calling one by one from a list based on what I believe were relevant search criteria on State Bar website.
I had them recommended to me. I have used them and was pleased.
OTOH, I've seen non-competes as long as 2.5 years from places like Citadel.
you do get non competes etc., but it never holds up in court as you can easily prove it prevents you from finding jobs.
i wish for you in your legislation there might be a similar law, otherwise these things are really evil. i mean, its like prison in some fields niche enough, and those are exactly the fields prone to such overly protective clauses
Here it's six months top, and it only applies to management and specialists with critical domain knowledge - and this also has to be reflected in their wage.
1) ask them to remove it... and so I risk not getting the job
2) don't say anything, and sign it
If I'm really interested in the job, I'll go for option 2 because I know they cannot enforce such claims, so I'll be fine.
Approximately all businesses explictly try to exploit workers to the full extent of the law. That's what capitalism is and it's how we've structured our society.
but i think your broader societal point stands though. especially with horrible language in vendor contracts that people click through because who has time for that garbage. i hope llms will help people push back in somewhat more concerted and systematic fashion.
The answer to those questions might be really unsatisfying in practice, since it breaks down to a cost calculation by the sueing company (if the company leadership is rational). So in case you get sued you have to fight defensively and bleed them enough so they give up or something.
Having talked to lawyers about this sort of case, be prepared to speak to several to find a match, or read between the lines - when you ask questions like, “If I break this clause, what sorts of liabilities am I exposing myself to, and how often in your experience does that happen?” Be prepared for, “as my client, I don’t advise you to do that.” Not super helpful in my case, as I was trying to understand the possible outcomes and likelihoods.
The best advice I got was from a business mentor which was, “if you don’t rub it in their face, they probably won’t notice, and probably won’t care.”
Which is, as you mentioned, a probability calculation.
What I would personally guess [not legal advice] is that you rate the likelihood of your employer suing higher than they do (absent anything egregious).
AI companies protecting their IP.
I work in the Robotics industry. While the algorithm for our path planning would be a trade secret, how path planning is pursued is not. It's a fundamental concept in robotics. To extend the metaphor, it would be as if my company thought that any robotics work that involved path planning would violate their IP, because I did path planning work with them. It's nuanced to be sure, but some companies are very aggressive as to prevent you from having mobility in your career. Sometimes in a genuine effort to protect their IP, but also sometimes to reduce your negotiating power or punish you.
[1] https://www.thisamericanlife.org/427/original-recipe
I don't even think that non-competes should be allowed for higher level employees/executives. Everyone deserves the right to change jobs whenever they want to.
Is it messed up? If you're a salesperson, and you've built the relationships with these customers is their loyalty to you, or to the company that you worked for? I had a personal trainer for a little while and he took all his clients to a new gym when he decided to contract with a different gym.
I don't know the answer to this. But it doesn't seem as clear cut to me.
I moved from New York to California a bit over 20 years ago in large part because I personally encountered this (the IP ownership bit), and preferred to live under California's rules.
It is worthwhile to read https://www.paulgraham.com/america.html. Point 7 talks about how easy it is for regulations to accidentally squash startups. I believe that the fact that California makes neither mistake causes us squash fewer startups. It is not sufficient to have made Silicon Valley a startup hub, but it was likely necessary.
This agreement shall not apply to any inventions, conceptions, discoveries, improvements, and original works of authorship that [my name] developed entirely on their own time without using [the employer](s) equipment, supplies, facilities, trade secret information, or anything not based on or received from [the employer].
It was only 20 years too late to help me.
At the time I was working for a competitor and I figured they could use the fact that I interviewed with them to argue that I - either intentionally or unintentionally - gained proprietary knowledge of their product and my current employer gained from it.
In that case you need to ask for a lifetime worth of salary, including growth from being in position to be put in escrow before you sign the dotted line. Otherwise they can hire you and fire you immediately and you'd never be able to work in your field that you spent years/decades training for.
At least in theory, any judge that saw clauses like that should throw it out for that reason alone in those jurisdictions.
In my experience, the more the employer puts up a show, the more unenforceable it is.
Companies that are serious about noncompetes for professionals (rather than hourly shift workers) generally do garden leave. I'd take a noncompete for a garden leave company seriously, and would maybe roll my eyes at a broad noncompete from a random tech firm.
(Don't sign anything you're not comfortable with.)
If you're not copying internal wikis, and poaching customers what are you even doing?
You can change these contracts. Hiring people is difficult and once the company has made that decision they don’t want to lose you over a contract clause.
I am good at what I do, but no unicorn and not FANG "level".
But then again, I don't live in the US
You are required to hold confidential stuff for life, like business contracts, but you can use your know-how, if it does not violate any patents, in a competing company as you see fit. This knowledge is a part of you and cannot hold you against employment. Even if you do decide within those two years to employ yourself in competing company, this can be held back by your original company only if they give you X% of your pay at them (X can be 80, or as low as 50, as my friends inform me).
Enforcement can maintain litigation longer than you can maintain solvency.
California bans anything that is effectively a non compete.
So the callout to be wary of them is totally legit... but it doesn't look like they are going to be enforceable when such things go through the courts.
I’d rather not carry the cost of learning it’s not enforceable.
"Defendant has never worked in any other industry. He has three kids. He's gotta work."
(That's for regular employees--it's a different issue with founders who may have significant equity stake and such.)
The worst is that they can delay the case for years, leaving you in a legal limbo. Or go after your employer, involving them in the discovery process.
Never, EVER sign a contract without reading it first, and having your lawyer review it.
It's difficult to have legal help with your contract responsive within the timeframe that you have available for signing it before the business rescinds their offer and moves on.
Because that’s how I found mine. $200 later, and I had total confidence in what I was signing and a lawyer on my side if things went pear-shaped in the future.
That presupposes that people have a lawyer, and one specialized in employment law at that, which is highly unlikely to be the case for 99% of the population.
I never did, though. I just crossed out the clauses I didn't want to accept and initialed them.
Places like Zoho or Verisign don't let you do that.
This whole “bUt WhO hAs A lAwYeR” nonsense I’m being blasted with in my comments is exactly why these sorts of contracts, grifts, and scams are allowed to exist and succeed.
Know your rights, get a lawyer, and then share that knowledge with others. It’s Organizing 101 stuff.