No Compete Clause (IT)
I never really got what these mean. I've always assumed it means if I'm working for Company A through agency A, I can't keep the same position with Company A and go to Agency B. But, can Agency A keep me from taking a new contract with Company A for a different position under Agency B? Can Agency A keep me from going to Company B under Agency B? Are they just protecting the job I was hired to do ...or all jobs in the company? Seems silly to think, but reading my last one I could never gather what they were keeping me from "competing" with them. I have never had to sign one nor does my company have one. What I believe it means is that if Company A and Company B are both generating or producing the same or similar product and you are working for Company A, you cannot go to work for Company B. The belief is that you may take Company A's secrets of the trade and apply them to Company B giving Company B an unfair advantage and a peek into the way that Company A does business. When you sign a non-compete agreement with Company A and then go to work for Company B, you can be sued for quite a heavy amount and it will tarnish your reputation and essentially cause you to become unemployable. No other company will trust you. I don' t run into them for full time opportunities, but they are very common for IT contractors. Reading up some more, it mainly depends on the agency. For the most part, they are just trying to get their "finders fee" if the company decides to hire you permanently. My last contract agency tried to prevent me (through the non-compete) from providing any services to any of their clients (past, present, and future). I' m not joking, it actually said that. So basically, they wanted to stop my career if I ever left. It was my first contract and I' m much more savy now, so want to check everything out. It totally depends on the contract you' re signing but in general terms, they' re saying that you cannot leave Company A and go to work for Company B in a way that steals Company A' s customers. So, it might say that you can' t work in this industry for someone else within so many miles for 6 months after you leave. Or it might say that you can' t go to work for a customer or vendor of theirs. In order to be enforceable, the agreement really has to be reasonable, they can' t just say that you can never be an IT guy again anywhere. OK, they CAN say it but if it goes to court, they' ll probably lose. Of course in the meantime, you have to fight it in court. So, the upshot is to read what you' re signing and be sure you understand it. See a lawyer if you need to. | |
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