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Class action lawsuit against non-compete clauses

JEDI

JEDI

Lifer
http://www.flushdraw.net/news/poker...gainst-former-bellagio-service-provider-intu/

The complaint offers the language of the non-compete clause, which was supposed to last for one year:

As a material consideration for Company entering into this Agreement with Contractor, Contractor covenants and agrees that during the term of this Agreement, and for a period of one (1) year following the termination of this Agreement, Contractor shall not directly or indirectly, accept a position (whether as a temporary employee, agency employee, employer, independent contractor, permanent employee, owner, partner, stockholder, or venture participant) with any casino/facility/agency to which Contractor was scheduled to perform the Services by Company. (the “Covenant Not to Compete”).​

However, the complaint asserts that the above is null and void as a matter of law, since it over-protects INT’s interests and imposes an undue hardship on Johnson, DeLile, and other potential plaintiffs.
Undue-hardship claims are frequently used in successful legal arguments attacking over-broad non-compete clauses.

The complaint also asserts that the non-compete clause is by its nature punitive (and perhaps vindictive)...


Cliffs:
massage company loses poker room contract
massage therapists prevented from working with new massage company because of non-compete clause, which the old company is enforcing.

I don't see how this is any different than working as a consultant at a company and the consulting company loses the contract.
the new consulting company routinely hires people from the former consulting company, even though those employees signed a non-compete.
(it has happened to me multiple times.)

What's your take?
 
I don't like the idea of putting a clause in a contract that is knowingly not enforceable. Wish there was some penalty for that since its purpose is intimidation and people often don't know better or are unwilling to test or pay for representation.
 
K1052 said:
Non-competes, binding arbitration, and anti-disparagement clauses should all be flatly illegal.
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Yep, if I wanted to improve employment conditions in the US with simple reforms that had basically zero downside and all upside it would be banning these from almost all employment contracts, at least as a condition of employment. If both sides want to agree to binding arbitration that's fine by me but as soon as you make it a requirement to get a job it's simple coercion.
 
K1052 said:
Non-competes, binding arbitration, and anti-disparagement clauses should all be flatly illegal.
Click to expand...
anti-disparagement clauses?
don't know what it is but sounds like it'll run afoul of 1st amendment freedom of speech?
 
ivwshane said:
Freedom of speech means freedom from government restricting what you say and does not apply between citizens.
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Agreed. Unless your employer is a government agency, generally you don't have 1st Amendment protection for your speech. (And even that has its limits). Unless a private employer unlawfully discriminates in how it disciplines employees for speech, they're relatively free to do so.
 
Anti-capitalist, anti worker, anti freedom and needs to go.

It's almost an inverse union in effect, where companies can effectively band together and suppress wages and opportunities, yet there is no active collaboration to organize it.
 
BoomerD said:
Non-compete clauses SHOULD be illegal...so should the prohibition on discussing wage/salary/compensation. (and that part IS illegal in some jurisdictions)
Click to expand...
Non-competes are completely unenforceable in Oklahoma, no exceptions. So my company made me sign one agreeing to go by Delaware law, which is even more bullshit. The agreement is way too broad and basically seeks to make you unemployable if you leave the company. Luckily, Delaware has a history of refusing to use their law when their law is fundamentally opposed to the state of employment.
 
ivwshane said:
Freedom of speech means freedom from government restricting what you say and does not apply between citizens.
Click to expand...
Only if you are currently employed by the said company, once you leave they need the legal authority of the government in order to enforce them.
 
I had to sign a non-compete for, I forgot, this was in my 20s, for a game company startup. I forget how many years it was. Well, I left the company, and then... I was unemployable for a year or more, which is like ages in the games industry. Sigh. I never got back into the industry.
 
I work in an industry with lots of noncompete clauses and I’ve never actually seen one enforced. I’ve seen lawsuits over corporate espionage which was fun and threats of one for going after previous clients but that never amounted to anything. They seem all talk honestly.
 
Greenman said:
As long as the company continues paying it's people for the one year in which they can't work, I have no problem with it.
Click to expand...

Still an issue. When looking for new work you have to explain how sitting on your ass for a year is a good thing.

They just need to go away.
 
Democrats should pass laws to ban these in states they control and the federal law, when they get a chance. Fortunately they are banned here in California already, and it's one of the reasons Silicon Valley is doing great, including first and foremost the companies and their shareholders. Funny how not restricting the flow of expertise to where it can be the most productive tends to increase productivity.
 
Greenman said:
As long as the company continues paying it's people for the one year in which they can't work, I have no problem with it.
Click to expand...

I wouldn't either but I've never seen a case of non-compete clause working that way. I refused to sign one with my current employer as it was too vague and broad in scope. I understand that the company wants to protect a certain product but I'm not putting myself out of work for a long period over this.

I have seen two guys have to take lower paying and crappy jobs for 1 to 1.5 years because of this recently. Both had new jobs lined up, put in a notice and had to find something else as the previous employers went after them for non-compete.
 
Engineer said:
I wouldn't either but I've never seen a case of non-compete clause working that way. I refused to sign one with my current employer as it was too vague and broad in scope. I understand that the company wants to protect a certain product but I'm not putting myself out of work for a long period over this.

I have seen two guys have to take lower paying and crappy jobs for 1 to 1.5 years because of this recently. Both had new jobs lined up, put in a notice and had to find something else as the previous employers went after them for non-compete.
Click to expand...
I could see if you were a programmer and you wrote code for company A and took a job with company B and you wanted to reuse code for your new job you developed at Co A. Just tying up someone's talents for an entire year is not fair in any way but I guess if you refuse to sign one you severely limit the number of Co's that will hire you. Believe it or not this actually happens in fast-food quite a lot as well and in the hospitality industry as well.
 
In my industry company A pays a salesman to go find clients to get their business. Lots and lots of resources go into this. They all sign nincompete clauses where essentially if they leave they can’t go after those same clients at their new employer. All do anyways. I see the company’s perspective of wanting to have one in place since they are sinking so much resources into the relationship with these clients, but if it’s never enforced maybe it’s time to rethink it all together.
 
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