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no compete contract

Discussion in 'Pesticide & Herbicide Application' started by rkk95, Apr 30, 2003.

  1. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

    DO you guys make your employees sign no compete contracts? If
    you do how long and what limits on how far from your office?
     
  2. 30 miles radius from the furthest accounts.

    5 years.

    No you can't have a copy of it, cost me $500 and It has paid that back many times in over.
     
  3. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

    I don't want a copy of it I have my own, one guy just quit and started his own thing, was just wondering how well they hold up in court, I've never really pushed the issue before, but I taught this kid everything, and he could go into his route that he did for the past four years and probably pick up quite a few of my customers.
     
  4. It works well, simply states he cannot compete for any past or present customers, however I cannot stop him from going into whatever biz he/she chooses.

    I have used it 2 times and it put 2 jack*** out of biz.

    The guys went for accounts they were servicing, got a few, but it cost them dearily, and I did not take the customers back.
     
  5. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

    Thanks for you input, my contract states that they can not go into the lawn care biz for them self, work for another company, consult
    for any other company, within 50 miles from office, for three years.
     
  6. Pretty sure you cannot stop them from going into the lawn biz, but you can protect your self from them going after your clientele.

    If you had formulations recipes and stuff like that you can, but this is not restaurant.

    A buddy owned an auto parts store, he signed a non compete for 50 miles from the store he sold as to own one for 5 years. He went to work at one 20 miles away, they couldn't touch him because they specified ownership. Non competes are very tricky.

    The day he started, his old store lost half it's customers. Now if they would have specified the customers for a longer time, there would be no issue.

    I would not worry about stopping them from going into the lawn biz, but protect you past and present clients.

    This also helps to protect someone from going to another LCO and soliciting your customers.
     
  7. fblandscape

    fblandscape Banned
    Posts: 776

    DAMN! you guys are tough. I know several companies who do use non-compete clauses, but the $ amount of business that they do with their clients is a LOT different that what you guys are doing. They say you can't go out on your own for 2 years within 30 miles or 50 miles of a company office. However you can go work for somebody else in the area... I think if you took the people to court saying that they broke the contract in regards to switching companies in the area, they could sue you right back saying "a man has the right to be able to make a living for himself"
     
  8. No a man has the right to work, you can however protect your clent list.

    I would get a lawyer to draw it up for you, mine is one of the tear off pages of the employee handbook they must read and sign with a whitness.
     
  9. Gr grass n Hi tides

    Gr grass n Hi tides LawnSite Bronze Member
    Posts: 1,020

    Some damn good feedback LGF. I wanted to post on this thread & tell you so, so it will be easier to pull back up later when I do have employees to think about.
     

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