Need some help here...PLEASE!!!

[BigJim13]

Today the company my wife works for came out with a new Confidential Info Ownership agreement, basically a non-compete clause and telling her that all "trade secrets" for her company are solely the property of the company.

My wife, who is very level headed, decided not to sign right away unlike most other employees and asked me to look it over. Everything seems normal and written in "lawyerese" so most people get bored befor reading the majority of it and just sign. No big surprise here and I read the ENTIRE contract.

The part that blows me away is that they told her when they passed out the form to sign that it was not a condition of employment to sign, but all employees that sign get $100 and this was clearly spelled out in the first paragraph. This make absolutely no sense to me.

Has anybody heard of or expereiced such a thing? What are your thoughts? It just doesnt make sense to me....HELP!

[ezra76]

I'm sure someone will come along after that knows more than me but... I've heard of this before both in software and drug companies. Basically you are signing away the ability to get a job with a competitor if I'm correct. I believe they could use that paper as evidence in court when they sue should an employee decide to quit and end up working for a competitor.

[BigJim13]

Originally Posted by ezra76

I'm sure someone will come along after that knows more than me but... I've heard of this before both in software and drug companies. Basically you are signing away the ability to get a job with a competitor if I'm correct. I believe they could use that paper as evidence in court when they sue should an employee decide to quit and end up working for a competitor.

Oh thanks for reminding me, the part about working for a competitor last for 1 year after the employment ends. It basically states that she cannot solicit another employee to work at another company with her.

[Wi-Golfer]

pretty standard deal with a lot of companies now days, the only odd thing you brought up was the $100 for those signing the document....sounds like an illegal bribe if you ask me.

[Pa Jayhawk]

I am only guessing the $100 was a result of the fact that the clause came out after employment. Usually they do so as part of hiring the individual, and the terms are negotiated at that point. I am only guessing they cannot legally make you sign the form afterwards without certain risk of lawsuits or severance packages should some decide not to sign. So I guess the $100 incentive seems like a logical choice to me to get the people to sign, then iron out the details with the others afterwards.

Just be aware, companies are usually pretty lenient on modifying these to you needs, as was the case on the 2 I signed in the past.

Simply put, why would you want to sign or agree to something that is not contingent on keeping your job. And saying it is required to keep your job could be pretty costly in several ways after you are already employed with the company.

[BigJim13]

Originally Posted by Wi-Golfer

pretty standard deal with a lot of companies now days, the only odd thing you brought up was the $100 for those signing the document....sounds like an illegal bribe if you ask me.

Thats the part the makes me take a pause and re-read the whole thing. Why the heck would they offer $100 just to sign a standard document like this??

[SCGolfer]

they offer that to get employees to sign it, in the long run it is better for them to give away 100 bucks then have you run off to a competitor and give away all the secrets of the company. my wife works in pharmaceuticals and this is a pretty common practice. I have seen people not sign, leave the job and still end up in court with the previous employer. I wouldn't necessarily consult with a lawyer, but if you have a friend that is one, I wouldn't hesitate to ask some questions. I have not seen an instance where someone was terminated for not signing seems that is asking for trouble. I also would be sure of how it reads if she is terminated at some point by the employer....most people have no choice but to take a job with a competitor, is the one year non compete still in effect if you are fired??

Jason

[mddubya]

My company just came out with this too. They want me to sign it, but it says I agree to not go to work for a competitor, or one of the companies we service or do buisiness with. So basically, if I sign it and I leave my current employer, I couldn't work for a year! Fat chance I'm signing it!

[Pa Jayhawk]

Probably also good to look at this in the long term. While they likely won't fire you without getting sued for not signing it, it is not to say you may not "get the raise you expected" or "the promotion to the job you want to move into" if you have not or will not sign. Or if you are layed off, they could likely make any severance package they provide contingent on signing the clause. I am not a legal expert on these, but there is usually more than one way to skin a cat. If it is after employment, they obviously can't say "sign or be fired", so obviously as I mentioned, if they are offering something in return ($100), then they are covering their @$$ if you take the money. If they do it in the beginning, the job is enough incentive usually. On the other hand, they are not going to say that they will be out of the realm of what you want to do, but if they have the inclination to believe you are not committed to their company, things could possible change in not so clear ways. I am not fully sure they would not ask you to do so on your next promotion, however if you don't do it now there may not be a "Next Promotion".

Also be aware that they can have you sign one of these, however this is not to say that they will be real successful in enforcing it later. This depends alot on the laws of the state.

Personally if you have question in how it will affect your future, and hesitant to sign, then you may want to talk to an attorney that specializes in this type of law. If it were me and I liked the job, I am not sure I would take the approach that there is no reason to sign the thing. While they won't come right out and say your employment is based on doing so, you may in turn find yourself looking for a job, for other reasons, sooner than you think. Sadly, it may be under your own pretense. While you have the right not to sign the form, they likely have far more rights in assuring their producted is protect from their competitors, and a heck of alot more money to provide the assurance.

edit 1 - on the other hand, if you feel confident you could pick something else up just enjoyable in a heartbeat, where they will make signing a no-compete clause as a basis for employment, then you really have nothing to lose. I would just venture to guess you will be going through a lot of work and stress for something that seems inevitable.

[BigJim13]

Originally Posted by Pa Jayhawk

I would just venture to guess you will be going through a lot of work and stress for something that seems inevitable.

This is pretty much the conclusion we reached last night. I guess my main concern with the whole situation is that I have never heard of the $100 incentive just to sign a paper.

PS-she did end up signing the clause after we both read it about 3 times. Seemed pretty straight forward. They gave her the check as soon as she handed it to the President of the company...

[Pa Jayhawk]

Yeah, to me it really just doesn't appear like there were many options that would still likely lead to a healthy work environment. The key is being happy with the job, and as I mentioned earlier, being able to "enforce" the clause is something you can tackle down the road should the time ever come. Hopefully you will never have to give it further consideration.

I guess the other option I personally may have considered just being the sick and twisted person that I am, was possibly signing the deal but refusing the $100 check. Although the people I used to work with would likely have seen that coming. Not that it would have accomplished much outside of paying $100 to keep them on their toes and watch them twist in the wind.

edit 1 - ... as far as easing the tension on the $100 offering, just do a few searches and you will likely find what I mentioned earlier on offering some sort of incentive to sign. Otherwise they may have legal consequences by not doing so, they are just covering their legal bases. Just go out and have a nice dinner and a few drinks with the money, and assuming she is happy with the job, hopefully it will be a long and prosperous venture for all parties involved.

[twofast2s]

the companies i worked for always had employees sign it before even working in the lab. one was GlaxsoSmithKline, other one was/is Siemens medical.

they also make you sign another agreement that i will not be working on similar project/field of competitor for certain number of years if i do decide to switch.

makes sense.

but if i had some idea that i think it's gonna be valuable, i won't bring that particular idea up, rather, i'd start my own company and sell it to bigger company for more money.