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I need a Non-Compete form

Discussion in 'Business Operations' started by Ric3077, Mar 20, 2007.

  1. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    I am bringing on a few new employees and they have agreed to sign a non compete form stating they will not go after my accounts during or after their employment with me. I could work up something basic but was wondering if anyone out there had a good one I could use as a template? Thanks!
     
  2. JKOOPERS

    JKOOPERS LawnSite Bronze Member
    Posts: 1,259

    i would like to know if that would stand in court?
     
  3. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    It is pretty much common practice in other business fields so I figured why not here...I think it would hold up in court however, in my case it will be used more to defer them from even thinking about it....kinda like a bluff.
     
  4. Grassworks Inc.

    Grassworks Inc. LawnSite Member
    Posts: 95

    There are some that hold up in court. You can't keep them from working in the industry in the same capacity, but you can restrict them from doing it within a certain radius of your business. Also has to state financial penalties for taking your clients. I don't use a non-compete, but I work closely with a large national company that does and I've seen them take former employees that violated a non-compete to court and win.
     
  5. ooo

    ooo LawnSite Member
    Posts: 235

    I would think you can only make them not compete for a certain length of time after they leave you..
     
  6. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    except disney and Georgetown. every company I have worked for made me sign a non-compete. They really can't limit you that much (everybody has a right to work).
    The biggets thing is the fact that the employees will be encountering customers and have access to proprietary information. so you want to limit the employees from taking that propietary informatoin to other copmanies or using it themselves for fincaial gain.

    In Virginia, the enforceability of covenants not to compete are governed by common law principles. As restrictions on trade, CNCs are not favored by Virginia courts and will only enforce narrowly drafted CNCs that do not offend public policy.

    In Virginia, a plaintiff must prove by a preponderance of the evidence that the covenant is reasonable in the sense that it is: (1) no greater than necessary to protect its legitimate business interests, such as a trade secret; (2) not unduly harsh or oppressive in restricting the employee’s ability to earn a living; and (3) not against public policy.
     
  7. ooo

    ooo LawnSite Member
    Posts: 235

    From expertlaw.com:
    "Non-compete clauses must be conditioned on two things: time and space. Both must be reasonable.
    For example, the non-compete clause could've restricted you (after you left) to the entire universe for 24 hours or the 100 block of Main Street for 10 years."


    Heres my example form:
    http://www.ashleylandscaping.com/temp/non-compete.doc
     
  8. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    Thanks everyone and thanks OOO for the sample!
     
  9. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    A binding Non-Compete MUST have some sort of 'compensation" ...ie the $25 "signing bonus"

    http://en.wikipedia.org/wiki/Non-compete_clause


    Confidentiality of Information:

    COVENANT NOT TO COMPETE:
    FLA. STAT. § 542.335

    In consideration of my being employed by Fantasy Lawns Inc., yet not necessary for employment, in recognition of the value of the corporate name, reputation, and good will of Fantasy Lawns Inc., and the value of the training and operating methods and techniques of the Company understanding & signing of this Restrictive Covenant.

    I the undersigned, hereby agree that if such employment is terminated for any cause, employee shall not, for a period of 12 months thereafter engage either directly or indirectly as a principal, alone or in association with others: in the Confidentiality of Information or Solicitation of or in contracting with, existing customers of the company as specifically shown and listed hereto attached, similar services provided such customers by the company, within 5 miles of Fantasy Lawns Inc. mailing address.

    Agreeing to these terms entitles the employee to a $25.00 signing bonus.


    Employee Full Name:


    ___________________________
    Printed



    ____________________________ Signed on this Date: __________
    Signed
     
  10. ooo

    ooo LawnSite Member
    Posts: 235

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