Today I advised a professional employee client about how he might avoid a non-competition and confidentiality agreement. Also today, I revised a non-compete for an EMPLOYER who makes his employees and contractors sign them. For their benefit, employers usually want arbitration clauses in employment agreements. But not in non-competes. In those, the employer wants employees to be subject to judicial enforcement, or at least be fearful of a judge and attorney’s fees. Employers know arbitration is toothless compared to a civil case. That is why they demand court proceedings in their agreements when they could use their power, and hide from them when they know they could be hurt. For employers, it’s dealer’s choice. If you feel like you’re on the receiving end of a bad deal, then click “Services” above, or contact me by email at JimL@LangendorfLaw.com.
Today some U.S. Senators, Elizabeth Warren and Amy Klobuchar, dashed off a letter to the Federal Trade Commission urging that agency to make a rule that would strongly limit the use of non competition agreements. Employers of all stripes use “non-competes” to protect them from competition from former employees. I find that they are often unenforceable as written; and many employers enforce them only sporadically. Nonetheless, they do stifle competition and entrepreneurship. While I write them and fight them, and get paid for the effort, I would not miss them if they were gone.