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Allcleanguy
Guest
Does anyone Know wher I might download an example of a "No Competition Clause" for contractors or any other source? I would really appreciate a reply.
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oguard
New Member
I'm sure you will be able to find one on the internet by searching www.google.com and using the 'search within results' link BUT.....
if US Courts are anything like Canadian Courts then Non-Compete clauses are generally unenforceable, so beware. You are essentially relying on the sense of honour that all too few people have these days.
Personally I feel if you need to have that sort of an agreement then you are best not hiring that person anyway, merely my 2 cents worth.
Best of luck.
if US Courts are anything like Canadian Courts then Non-Compete clauses are generally unenforceable, so beware. You are essentially relying on the sense of honour that all too few people have these days.
Personally I feel if you need to have that sort of an agreement then you are best not hiring that person anyway, merely my 2 cents worth.
Best of luck.
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akakad
Guest
I believe you can find one at http://www.officedepot.com - and, while I agree with the potential unenforceability, there are a few guidelines they go by to determine that.
First is unreasonableness of the agreement - you can not enforce an agreement that will take away the livelihood of the other party. You can, however, make reasonable limitations which are enforceable, such as not communicating with any of your customers for a period of two years, not using information with regard to customers and leads that was derived as a result of employment by you.
Many times these contracts will say something to the effect that one can not operate a PW business within a certain number of miles, etc, and those types of clauses are hard to enforce.
But I would definitely have one in place. A few years ago, I had a guy who took a job JUST to learn my business, then he alienated some customers by doing poor work (I do not spray - part of my sales pitch is brushing by hand - and he sprayed decks intentionally and oversprayed ridiculously). He contacted customers of my jobs trying to get them to pay him directly, and then he burglarized my storage unit. Total loss was about $19,000, so I would definitely have all legal safeguards in place, even if just for the perception.
First is unreasonableness of the agreement - you can not enforce an agreement that will take away the livelihood of the other party. You can, however, make reasonable limitations which are enforceable, such as not communicating with any of your customers for a period of two years, not using information with regard to customers and leads that was derived as a result of employment by you.
Many times these contracts will say something to the effect that one can not operate a PW business within a certain number of miles, etc, and those types of clauses are hard to enforce.
But I would definitely have one in place. A few years ago, I had a guy who took a job JUST to learn my business, then he alienated some customers by doing poor work (I do not spray - part of my sales pitch is brushing by hand - and he sprayed decks intentionally and oversprayed ridiculously). He contacted customers of my jobs trying to get them to pay him directly, and then he burglarized my storage unit. Total loss was about $19,000, so I would definitely have all legal safeguards in place, even if just for the perception.
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ernie50
Guest
Here's one I've been using. I found it on the net a couple of years ago and forget the source. If you want the word file emailed to you, let me know. Ernie
EMPLOYEE NON-COMPETE AGREEMENT
For good consideration and as an inducement for Aqua Clean Mobile Power Wash, Inc.
(Company) to employ (Employee), the undersigned Employee hereby
agrees not to directly or indirectly compete with the business of the Company and its
successors and assigns during the period of employment and for a period of five years
following termination of employment and notwithstanding the cause or reason for
termination.
The term "not compete" as used herein shall mean that the Employee shall not own,
manage, operate, consult or to be employed in a business substantially similar to, or
competitive with, the present business of the Company or such other business activity in
which the Company may substantially engage during the term of employment.
The Employee acknowledges that the Company shall or may in reliance of this
agreement provide Employee access to trade secrets, customers and other confidential data
and good will. Employee agrees to retain said information as confidential and not to use
said information on his or her won behalf or disclose same to any third party.
This non-compete agreement shall extend only for a radius of 100 miles from
the present location of the Company and shall be in full force and effect for five
years, commencing with the date of employment termination.
This agreement shall be binding upon and inure to the benefit of the parties, their
successors, assigns, and personal representatives.
Signed this _____ day of ________________________ 19____.
_______________________________________
Ernest Boss, Aqua Clean Mobile Power Wash, Inc.
_______________________________________
, Employee
EMPLOYEE NON-COMPETE AGREEMENT
For good consideration and as an inducement for Aqua Clean Mobile Power Wash, Inc.
(Company) to employ (Employee), the undersigned Employee hereby
agrees not to directly or indirectly compete with the business of the Company and its
successors and assigns during the period of employment and for a period of five years
following termination of employment and notwithstanding the cause or reason for
termination.
The term "not compete" as used herein shall mean that the Employee shall not own,
manage, operate, consult or to be employed in a business substantially similar to, or
competitive with, the present business of the Company or such other business activity in
which the Company may substantially engage during the term of employment.
The Employee acknowledges that the Company shall or may in reliance of this
agreement provide Employee access to trade secrets, customers and other confidential data
and good will. Employee agrees to retain said information as confidential and not to use
said information on his or her won behalf or disclose same to any third party.
This non-compete agreement shall extend only for a radius of 100 miles from
the present location of the Company and shall be in full force and effect for five
years, commencing with the date of employment termination.
This agreement shall be binding upon and inure to the benefit of the parties, their
successors, assigns, and personal representatives.
Signed this _____ day of ________________________ 19____.
_______________________________________
Ernest Boss, Aqua Clean Mobile Power Wash, Inc.
_______________________________________
, Employee
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akakad
Guest
Sample Noncompete Agreements
Example 1:
This example is a complete agreement that you can fill in and use for an employee who does not have a separate written employment contract.
Nondisclosure and Noncompetition. (a) At all times while this agreement is in force and after its expiration or termination, [employee name] agrees to refrain from disclosing [company name]’s customer lists, trade secrets, or other confidential material. [Employee name] agrees to take reasonable security measures to prevent accidental disclosure and industrial espionage.
(b) While this agreement is in force, the employee agrees to use [his/her] best efforts to [describe job] and to abide by the nondisclosure and noncompetition terms of this agreement; the employer agrees to compensate the employee as follows: [describe compensation]. After expiration or termination of this agreement, [employee name] agrees not to compete with [company name] for a period of [number] years within a [number] mile radius of [company name and location]. This prohibition will not apply if this agreement is terminated because [company] violated the terms of this agreement.
Competition means owning or working for a business of the following type: [specify type of business employee may not engage in]
(c) [Employee name] agrees to pay liquidated damages in the amount of $[dollar amount] for any violation of the covenant not to compete contained in subparagraph (b) of this paragraph.
IN WITNESS WHEREOF, [company name] and [employee name] have signed this agreement.
_____________________________________
[company name]
_____________________________________
[employee’s name]
Date: ________________________________
Example 2:
This example is part of a larger agreement, such as an employment contract or an employee handbook. You can use it as a separate agreement or incorporate it into another, larger document.
Nondisclosure and Noncompetition. (a) After expiration or termination of this agreement, [employee name] agrees to respect the confidentiality of [company name] patents, trademarks, and trade secrets, and not to disclose them to anyone.
(b) [Employee name] agrees not to make use of research done in the course of work done for [company name] while employed by a competitor of [company name]
(c) [Employee name] agrees not to set up in business as a direct competitor of [company name] within a radius of [number] miles of [company name and location] for a period of [number and measure of time (e.g., “four months†or “10 yearsâ€)] following the expiration or termination of this agreement.
(d) [Employee name] agrees to pay liquidated damages of $[dollar amount] if any violation of this paragraph is proved or admitted.
IN WITNESS WHEREOF, [company name] and [employee name] have signed this agreement.
___________________________________________
[company name]
___________________________________________
[employee name]
Date:
Example 3:
This example is a clause and should be used as part of a larger agreement, such as an employment contract, and not as a stand alone item.
Covenant Not To Compete. (a) [employee name] agrees not to compete with [company name] in the practice of [type of business or service] while working for [company name] and for a period of [number and measure of time (e.g., “six months†or “10 yearsâ€)] after termination of employment within a radius of [number] miles of [company name and location].
(b) For purposes of this covenant not to compete, competition is defined as soliciting or accepting employment by, or rendering professional services to, any person or organization that is or was a client of [company name] during the term of [employee name]'s work with [company name].
Example 1:
This example is a complete agreement that you can fill in and use for an employee who does not have a separate written employment contract.
Nondisclosure and Noncompetition. (a) At all times while this agreement is in force and after its expiration or termination, [employee name] agrees to refrain from disclosing [company name]’s customer lists, trade secrets, or other confidential material. [Employee name] agrees to take reasonable security measures to prevent accidental disclosure and industrial espionage.
(b) While this agreement is in force, the employee agrees to use [his/her] best efforts to [describe job] and to abide by the nondisclosure and noncompetition terms of this agreement; the employer agrees to compensate the employee as follows: [describe compensation]. After expiration or termination of this agreement, [employee name] agrees not to compete with [company name] for a period of [number] years within a [number] mile radius of [company name and location]. This prohibition will not apply if this agreement is terminated because [company] violated the terms of this agreement.
Competition means owning or working for a business of the following type: [specify type of business employee may not engage in]
(c) [Employee name] agrees to pay liquidated damages in the amount of $[dollar amount] for any violation of the covenant not to compete contained in subparagraph (b) of this paragraph.
IN WITNESS WHEREOF, [company name] and [employee name] have signed this agreement.
_____________________________________
[company name]
_____________________________________
[employee’s name]
Date: ________________________________
Example 2:
This example is part of a larger agreement, such as an employment contract or an employee handbook. You can use it as a separate agreement or incorporate it into another, larger document.
Nondisclosure and Noncompetition. (a) After expiration or termination of this agreement, [employee name] agrees to respect the confidentiality of [company name] patents, trademarks, and trade secrets, and not to disclose them to anyone.
(b) [Employee name] agrees not to make use of research done in the course of work done for [company name] while employed by a competitor of [company name]
(c) [Employee name] agrees not to set up in business as a direct competitor of [company name] within a radius of [number] miles of [company name and location] for a period of [number and measure of time (e.g., “four months†or “10 yearsâ€)] following the expiration or termination of this agreement.
(d) [Employee name] agrees to pay liquidated damages of $[dollar amount] if any violation of this paragraph is proved or admitted.
IN WITNESS WHEREOF, [company name] and [employee name] have signed this agreement.
___________________________________________
[company name]
___________________________________________
[employee name]
Date:
Example 3:
This example is a clause and should be used as part of a larger agreement, such as an employment contract, and not as a stand alone item.
Covenant Not To Compete. (a) [employee name] agrees not to compete with [company name] in the practice of [type of business or service] while working for [company name] and for a period of [number and measure of time (e.g., “six months†or “10 yearsâ€)] after termination of employment within a radius of [number] miles of [company name and location].
(b) For purposes of this covenant not to compete, competition is defined as soliciting or accepting employment by, or rendering professional services to, any person or organization that is or was a client of [company name] during the term of [employee name]'s work with [company name].