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#409785 - 10/16/08 06:58 PM Non Compete Clauses???
Ronin1966 Offline
Professional Poster

Registered: 04/26/02
Posts: 3113
Loc: East Coast, United States
Hello:

A huge mega health club is moving into our immediate area in two locations fairly locally. Their claim to fame apparently being they offer every type/kind of class known to mankind with no annual fee/membership. You simply drop in and take the particular class...

Curious I inquired what they were needed in terms of instructors at this point and was told...

They give all their instructors a 1 year contract with a 2 year NON-COMPETE CLAUSE attached to it.


My question, are non-compete clauses enforcable?. Intellectually I think get the basic idea (I think) but how on earth could that work given the transicent nature of instruction for many who teach not in one place but rather in many, many different places whether martial arts instructors, or any other subject for that matter???


Jeff

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#409786 - 10/16/08 10:44 PM Re: Non Compete Clauses??? [Re: Ronin1966]
Kimo2007 Offline
Veteran

Registered: 03/31/07
Posts: 1057
Non Compete clauses are generally not enforceable, the legal point is known as restriction of trade. You cannot sign a contract which states you are legally bound to not earn a living.

That said, it can be used in litigation if it can be shown you used your time in employment to learn trade secrets with the intent to use the information to start your own business and take market share from your employer. Basically they have to show intent, and the non compete clause is simply a CYA to discourage that behavior.

That said laws are different in different places so it depends on where you live and work, but in general they are difficult to enforce.
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#409787 - 10/17/08 05:15 PM Re: Non Compete Clauses??? [Re: Kimo2007]
Ronin1966 Offline
Professional Poster

Registered: 04/26/02
Posts: 3113
Loc: East Coast, United States
Hello Kimo2007:

Thank you for your information.

<<Non Compete clauses are generally not enforceable, the legal point is known as restriction of trade. You cannot sign a contract which states you are legally bound to not earn a living.

Yet apparently they are still being written?!

I know many instructors (aerobics, dance, martial arts, etc.) who teach in numerous locations in the course of their normal work week. I found the concept pretty bizarre for the exact reasons you suggested.

Anyplace you like that descibes the issues for the lay public well?

Jeff

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#409788 - 10/20/08 07:09 AM Re: Non Compete Clauses??? [Re: Ronin1966]
ThomsonsPier Offline
Member

Registered: 06/24/04
Posts: 475
Loc: Reading, UK
Quote:

Yet apparently they are still being written?!



My understanding is that they're generally inserted into contracts by companies in the hopes that anyone signing the contract will be so cowed by the threat of legal action that they won't attempt to contest it. The clause itself has little value and can often invalidate a larger portion of the contract (at least in this country).
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