Non-Compete Contracts

The purpose of a non-compete contract in staffing is to prevent an employee from going off and starting a rival firm, stealing business away from the original company.

The use of the non-compete, which I often rail about, is really a threat to a new employee.  If we don't treat you right, we'll sue you to stop you from working for someone else.  Business owners will respond that employees are paid a fair wage for their work, and that work belongs to the company. Since recruiters sell themselves, or rather relationships, the only way to prevent a rival company from stealing business is to have employees sign a non-compete.

For some people, it's a joke.  One national firm automatically sends out a cease and desist letter any time one of their employees of a certain level leaves.  It is a badge of honor for former employees of this company to post this letter on the walls of their office, as a trophy of their importance.

One has to wonder at the effectiveness of a letter that people use as a trophy.  It reminds me of the days we used to substitute noise warnings for wallpaper at our house in college.

We called it the Cabana.  Of course, the local police eventually gave us noise violations, and almost got us evicted, but the story is the same.  A little.  And so is the lesson.

If your former employees are mocking you, you might reconsider your "standard" approach to non-competes.

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