Noncompete clause? For an internship??

[erub]

I'm finishing my masters' degree in Electrical Engineering in December. I saw a flyer for a company in the industry I want to get into in mid-September, offering an internship. Even though it was my last semester, I sent my resume in, hoping that if I got the internship for this semester it would make it easier to get a fulltime job in that industry after graduation. Finally got contacted early in October, passed two rounds of interviews, then got the background check, which took 3 weeks to come back. Monday was my first day and they gave me hiring paperwork to sign.

I am an at-will employee in a right to work state; they can fire me/I can quit for any reason or no reason whatsoever (so says their paperwork, which I am willing to sign). Also, my contract for the internship runs only thru December 31, at which time the internship could be extended, or a fulltime job (but my boss told me "not to count on it", "it depends on business needs"). Another sheet is their "confidentiality agreement" which goes on about not stealing trade secrets, etc..but buried in there is a noncompete clause; it says I can't work for a competitor for a whole year, no matter what the reason is I left the company (i.e. internship not extended for any reason..)! I talked with my manager about it, and he said he didn't think that these were enforced, but he referred me to his manager (Paul), who was kinda in a rush when I spoke with him. Paul told me that the clause "was dubious in a right to work state..but that signing the agreement is a condition of employment, and he couldn't modify the agreement for anyone"

Obviously I'm currently interviewing for other fulltime jobs (they know this, as I will be missing some of the days I originally agreed to work due to going out of state for interviews, which my manager told me he would be flexible with)..and one of them is with the big dog in their industry..but even still, isn't the point of an internship to get exposure to an industry, not to get kicked out of it?

 

[waggy]

for a internship? never heard of it.

not to mention seems silly.

 

[hypn0tik]

A lot of companies have a non-compete clause. For example, I used to work at Future Shop and one condition was that I wasn't allowed to work at a competitor's store within 6 months of me leaving the job.

 

[waggy]

Originally posted by: hypn0tik
A lot of companies have a non-compete clause. For example, I used to work at Future Shop and one condition was that I wasn't allowed to work at a competitor's store within 6 months of me leaving the job.

but as a internship? you know those are not always permanant jobs.

 

[hypn0tik]

Originally posted by: waggy

Originally posted by: hypn0tik
A lot of companies have a non-compete clause. For example, I used to work at Future Shop and one condition was that I wasn't allowed to work at a competitor's store within 6 months of me leaving the job.

but as a internship? you know those are not always permanant jobs.

Well, I can see something like that happening depending on what type of stuff you work with and do in your internship. I agree with you though, it's not very common.

 

[Stiganator]

Yes, definitely if you live in a "mecca" for a certain industry. Minneapolis is huge for Biomedical and most of the companies will have you sign a NDA and sometimes a NCA I believe my internship had a 1 year NDA and a 6 month NCA, but I was only a second year so it wasn't a big deal for me.

 

[Fern]

Cross out the non-compete section. Initial and date next to the deleted non-compete section. See if they say anything.

A non-compete for an internship doesn't sound reasonable to me.

I also doubt that they could enforce it (I.e., if they bitch and you want the internship, sign and forget about it. If they don't hire you full-time, just don't call them up later and tell them about your new job).

Fern

 

[erub]

Originally posted by: Fern
Cross out the non-compete section. Initial and date next to the deleted non-compete section. See if they say anything.

A non-compete for an internship doesn't sound reasonable to me.

I also doubt that they could enforce it (I.e., if they bitch and you want the internship, sign and forget about it. If they don't hire you full-time, just don't call them up later and tell them about your new job).

Fern

hmmmm...i have a pdf of the agreement, what about if i edited it and changed their "restricted period" from one year to one day?

 

[torpid]

In Wisconsin, that clause would be unenforceable most likely. It seems to already have failed some of the basic tests of enforceability. For example, it would need to be in its own section and not under confidentiality. It would also have to specify the specific duties that you are prohibited from doing and those have to match your duties as an intern. A limited, reasonable geographic area would need to be listed. It furthermore would need to exist to satisfy a demonstrable business need.

Not sure about Georgia. Maybe I can google it.

 

[darthsidious]

My company (which also does ic design) had similar language, except it said that if you left the company, they had the option of paying you for a year while you couldn't work for someone else. 99.9% of the time it's not used, as it's expensive, and creates resentment. People leave companies and go to other ones all the time.The only situation I can see it being used is if you were a top guy working on an important project with a big competitor around. In that case they might pay you to sit around, and deny the competition your expertise. I've actually never heard of it being used

 

[AgaBoogaBoo]

This should be standard practice by now... if you want to get involved, they're just making sure you don't mess with their business. Unless you have bad intention, I wouldn't worry about this, just sign it and do their requested tasks.

 

[darthsidious]

Originally posted by: erub

Originally posted by: Fern
Cross out the non-compete section. Initial and date next to the deleted non-compete section. See if they say anything.

A non-compete for an internship doesn't sound reasonable to me.

I also doubt that they could enforce it (I.e., if they bitch and you want the internship, sign and forget about it. If they don't hire you full-time, just don't call them up later and tell them about your new job).

Fern

hmmmm...i have a pdf of the agreement, what about if i edited it and changed their "restricted period" from one year to one day?

Bad idea... don't make any surreptitious changes like that - it gets company lawyers pissed.