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The Clause Quandry
Bob Weinstein is a journalist who covers technology, project management, the workplace and career development.
What do you do if a CEO or CIO asks you to sign a non-compete clause before agreeing to accept a high-level PM job? Or if they hit you with one after you’ve been hired? Do you dart for the door or sign it?
No pat answer can be given to solve this quandary. The bad news is most states allow non-compete agreements. (California is the only state that does not enforce them.) The good news is most states have a hard time enforcing them. According to eHow.com, “non-compete clauses are often used by businesses to keep its employees from engaging in work in a related business or in the same area for a certain period of time.”
There is a lot of confusion regarding non-compete clauses. But there is sound legal logic behind them once you get past the legal speak. Even though the law abhors restrictions on trade, the states that enforce non-competes only do so to the extent “reasonably necessary to protect the legitimate business interests of the employer,” according to labor law.
Let’s say you’re flipping hamburgers at McDonald’s and you’re asked to sign a non-compete clause. No court will enforce it if you to decide to flip burgers for higher pay at Burger King across the street because no legitimate business interest is at stake. It’s not like you’re putting a crimp in McDonald’s sales.…
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