Non-Compete Clause in Contract's

Discussion in 'Business Operations' started by agrostis, Jun 9, 2014.

  1. agrostis

    agrostis LawnSite Silver Member
    Posts: 2,268

  2. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    My opinion is that if I had an a employee I would not care if he left to go work for another Landscaper.

    Though if he left to start his own business I would want a no compete so he can not take away any of my customers for a period of say two years.

    Let him go out and find his own customers.

    That is fair to him and me.
     
  3. alldayrj

    alldayrj LawnSite Gold Member
    Posts: 3,768

    But its pretty much unenforceable in lawn care unless they photocopy your client sheet
     
  4. Dr. Cornwallis

    Dr. Cornwallis LawnSite Senior Member
    Posts: 847

    These things are basically BS. They rarely hold up unless an employee is blatantly stealing clients or proprietary company information. I don't really see how this is enforceable in the lawn business short of someone copying you're client list and targeting them specifically.
     
  5. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 892

    Non compete for employees - no. Non solicit for employees -yes.

    Start your own company - sure. Come after clients you serviced while working for me - no!
     
  6. RoyalTree

    RoyalTree LawnSite Member
    Posts: 156

    It is definitely enforceable. It is not really for labor but for management in this business. If we have an account manager that tries to leave and take customers with him to the competition it will be a problem. Account managers often get job offers from the competition with the condition that they deliver certain properties or a certain dollar amount from their employer.
    Posted via Mobile Device
     
  7. grassmonkey0311

    grassmonkey0311 LawnSite Silver Member
    from MD/NC
    Posts: 2,239

    To an extent, your right. BUT, the non compete has to be VERY well written. Otherwise, it can easily be fought that "you can't deny someone the right to work".

    This happened to me a few years ago. I worked in management for a company and was let go. A competitor had contacted me to work for them, I faxed over my non compete. The competitor had their lawyers look it over, and I was turned down. The non compete I had signed was VERY in depth. I think total it was 4 pages. I also contacted lawyers, who most said the same thing, while others said they think they had a good case. In the end, it wasn't worth the hassle and money, I chose a different career.

    To an average laboror, a non compete clause will not hold up. It would be like saying a McDonalds employee can't work at Burger King. Enforcing them on a mid level or higher level manager can and will work, but must be well written.

    I have included in my employee handbook that company information is not to be discussed with non company personel. I also have a non solicit in place.
     
  8. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984


    Explain the details of how your non solicit and how it works.

    I would have no problem with an employee going out on his own. As long as he is not taking any of my customers with him.
     
  9. grassmonkey0311

    grassmonkey0311 LawnSite Silver Member
    from MD/NC
    Posts: 2,239

    I feel the same way. Here is whats in my handbook.

    Confidential and Company-Owned Information
    The protection of confidential business information is vital to the interests and success of the company. We expect you to keep this information confidential. Non-public information related to the company’s business must not be published or given out without the consent of XXX Landscaping prior review and consent. This obligation continues after you leave the company. Solicitation of current/former customers during and after employment is prohibited. Any information published or given out, as well as solicitation without XXX Landscaping consent could result in legal action.
     
  10. ztman

    ztman LawnSite Bronze Member
    Posts: 1,007

    Don't know who wrote you handbook language GrassM. but in my opinion the non solicitation would not be enforceable because, among other things, there is no time duration , thus it would be deemed too broad in scope., therefore unreasonable and unenforceable
     
    Last edited: Jun 10, 2014

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