The Boston Globe reported this morning that Governor Deval Patrick will propose today a sweeping legislation to make it easier for workers in technology, life sciences, and other industries to move from job to job by banning the non-compete agreements companies use to prevent employees from jumping to rivals. There''s no evidence that abolishing non-competes has hurt them — quite the contrary. Here''s the irony: Non-competes do limit competition. MORE
It's really a restraint of employee movement amendment via non-compete contracts that are currently not enforceable in Georgia. It is not what its supporters are telling you. Courtesy of Peach Pundit. MORE
Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions. MORE
First, he’s proposing to ban non-competition agreements. Even though I often say that was 11 years and 364 days too many for my “non-big city, non-east coast” personality, Boston still has a sweet spot in my heart. The Massachusetts non-competition situation has always been stupid. In 2009, my partners and I at Foundry Group joined a coalition of VCs to try to eliminate non-competition agreements in MA. MORE
Employees seen as paying the price for the advantages an employer gains MORE
Restrictive covenants — Employers often use non compete and non solicitation clauses to retain employees. While non competes are not … Continue reading → Legal Why worry about employment law risks when you have enough things to focus on: building your team, getting traction, and lining up funding? Well, as the adage goes, “an ounce of prevention is worth a pound of cure.” MORE
Rob Stevens, vice president of sales and marketing at GrabCAD, writes in Xconomy how non-compete agreements--contracts that keep employees from leaving your company to work with competitors--are bad for business. Some states, like California, do not bother with enforcing non-competes. MORE
There was no NDA or non-compete between the parties involved so it is not clear that anything illegal transpired here. At the end of the Berlin talk I posted yesterday, there was a question about ethics. It was directed at startups and how they build a culture of ethical behavior. But ethics and morals is an issue that extends beyond startups. It is an issue for all businesses and business people. The Gotham Gal recently told me a story about one of her portfolio companies. MORE
Though his blog makes a case for why you need to be in Silicon Valley, that got me think about the non-compete agreement prevalent in MA. With the non-compete in place, employees can oly jump over ship to unrelated industry and are forced to forego the relevant experience built over time. If they were in MA, non-compete clause would've required them to work on something else that they cannot capitalize on previous experience. MORE
What is the rule about those pesky non-compete agreements signed upon discharge or sale of the previous company? The good news is that if you were not a significant (usually 5% or more) selling shareholder of a previous company, many states specifically exempt non-compete agreements signed between companies and their employees or minority shareholders. Entrepreneurs tend to remain in the business arena they came from. MORE
Use caution to avoid employer conflicts of interest and non-compete clauses. A common challenge faced by every entrepreneur is that they don’t have the bandwidth, interest or skills to do everything that is required to build their startup. MORE
Use caution to avoid employer conflicts of interest and non-compete clauses. In my experience, the initial idea for a new product usually comes from a single entrepreneur, but the implementation plan for a new business requires a team, or at least a co-founder. The reason is that any one person rarely has the bandwidth, interest, or skills to manage all the tasks required to build a business. Thus I find that two heads are usually better than one in a startup. MORE
Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies. Rather than push non-compete agreements on your superstars, it’s more productive to create incentive systems and creative ways for them to work more independently, just for you. MORE
The age of non-compete agreements is coming to an end. Here are better ways to make sure you don't lose top employees MORE
Anytime you decide to bring in someone who does not have a stake in your business idea you should have them sign a binding Non Disclosure Agreement or NDA before you tell them or show them a thing. Non-compete Agreements Before and After Hiring. MORE
Every so often, I get an email from an entrepreneur that starts something like this: “By reading further, you agree to the terms of our non-disclosure and non-compete agreement” My immediate reaction is to delete these emails with prejudice. MORE
Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Expand core competency and solidify strengths. MORE
Assume that your separation agreement will have a non-compete clause, and make sure you understand the terms of it. The non-compete should related to your company’s business specifically, and should not prohibit you from other types of ventures. MORE
Non-competes for salespeople and executives? For everyone else? HR/Benefits MORE
80 Benjamin Fink of Berman Fink Van Horn has a very well thought out and footnoted article over on Georgia Non-Compete and Trade Secret News (who knew there was such a thing) titled. Georgia’s New Non-Compete Statute: Is This-legislation Good For Business In Georgia? The new legislation also runs contrary to a trend taking hold in other states with which Georgia would like to compete. MORE
5000 CEO says it''s time for non-compete clauses to go. That is why I am a firm believer that we need to take collective action--within both the public and private sectors--and, once and for all, universally eliminate non-compete clauses. What Are Non-Competes? MORE
Businesses often require employees to sign non-compete agreements to protect their business interests. However, just because an employee has signed a non-compete agreement does not make the agreement valid under the law. Non-Compete Time Period. MORE
Whether a business is contemplating entering into a partnership, hiring a service provider or in the process of selling itself, a non-disclosure agreement should be utilized when information is shared with third parties. by Tej Prakash, co-founder of ShouldiSign.com. MORE
Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies. Rather than push non-compete agreements on your superstars, it’s more productive to create incentive systems and creative ways for them to work more independently, just for you. MORE
Non-compete agreements can be an effective tool to protect these assets. Under the right circumstances and when properly drafted and implemented, non-compete agreements are enforceable in Florida. Non-compete agreements must be limited in time and geographic scope. MORE
I do not need an NDA with someone I trust, and conversely, if I thought I needed an NDA to coerce silence, I would be really careful about what I shared. Startup MORE
For the last few years, many leaders in the Massachusetts innovation community have been arguing that non-compete agreements should be eliminated. Many studies have shown that non-compete agreements reduce R&D investment and stifle innovation. MORE
Non-compete agreements may be on the rise, but they''re not the best way to protect your business--for many reasons MORE
Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers. MORE
38 percent of workers--from executives to wage staff--have been asked to sign a non-compete agreement. Here's what you need to know if you're ever asked to sign one MORE
79 Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers. MORE
Thus you require employees to sign non-compete agreements so you can protect your trade secrets and your talent pool. I would think non-competes would be even more necessary in a business climate where the average length of employment is pretty short. MORE
While MMM makes it clear that the alert is not legal advice it is also clear they feel companies need to wait before creating new more restrictive non-compete agreements. Not too long ago John Yates and Morris, Manning & Martin launched MMM Tech Law. It's nice and they have a quickly growing MMM Tech Law LinkedIn group with over 1,200 members to go along with it. The group is a who's who of the Atlanta tech scene. MORE
Have you ever considered that the person who made your sandwich is bound by a non-compete clause that''s stricter than your senior vice president''s clause MORE
Immersive Web Home About 18th Centurey British Textile Industry and Non-Competes In another chapter of “There is Nothing New Under the Sun”, we find a close comparison between the attempt to control information for economic superiority and the economic impact of free flowing information. Employment non-competes will end up like Britain’s — shackles that fail in the end. MORE
Goodbye, Non-competes? Massachusetts Governor Deval Patrick proposed legislation to eliminate non-compete agreements in his state. A roundup of the day''s news curated by the Inc. editorial team to help you and your business succeed. MORE
Given the wording of Georgia amendment one there was never any question in my mind that it would pass. But some of the statements made in the Jobs of Tomorrow funded robo-call sent me a little over the top and set VoteNoOn1 in motion. When I do something I like to measure. MORE
Valleywag recently reported that Doubleclickers got screwed by Google when they asked them to sign non-competes and then terminated them a week later. First, I am not a lawyer and I don't play one on TV. Do no evil, eh? Anyway, Valleywag reported that these MORE
40 The proposed constitutional amendment will shackle employees to businesses, and strangle the present rights of employees to go out and work for competitors or start new competing businesses. You’d never know it by reading the ballot question, but the proposed constitutional amendment relates to “non-compete agreements.” Employers may already force non-compete agreements on employees -- as long as the agreements are reasonably limited in time, geography and job description. MORE
Up this week: How to handle an employee who won't agree to a non-compete. Dear Jeff, I'm in the process of hiring a new employee and he says he will refuse to sign our standard non-compete agreement. So a non-compete makes sense. MORE
Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers. MORE
Certainly the buyer’s asset purchase documents included a non-compete clause, usually valid for two years from the date of the closing. Separate confidentiality from non-compete, and obey the confidentiality clauses. The non-compete agreement does expire when stated. Some clever buyers try to slip in an unlimited non-compete, and some courts have upheld this. Does the non-compete start anew upon the employee’s departure? MORE
Yesterday VCRLG attended the Boston Bar Association’s “Freedom to Compete?” symposium on the current debate in the Massachusetts’ legislature about limiting or prohibiting the use of employee non-competition agreements in Massachusetts. William Brownsberger (who was on the panel) and Lori Ehrlich, that would prohibit non-competes in some employment relationships and otherwise limit when non-competes could be used and what restrictions could be enforced. MORE
Non-Compete Related Topics YoungUpstarts
FEBRUARY 19, 2016
Non-compete agreements can be an effective tool to protect these assets. Under the right circumstances and when properly drafted and implemented, non-compete agreements are enforceable in Florida. Non-compete agreements must be limited in time and geographic scope.
YoungUpstarts
NOVEMBER 21, 2014
Businesses often require employees to sign non-compete agreements to protect their business interests. However, just because an employee has signed a non-compete agreement does not make the agreement valid under the law. Non-Compete Time Period.
Inc Startups
DECEMBER 19, 2013
5000 CEO says it''s time for non-compete clauses to go. That is why I am a firm believer that we need to take collective action--within both the public and private sectors--and, once and for all, universally eliminate non-compete clauses. What Are Non-Competes?
Seeing Both Sides
APRIL 10, 2014
For the last few years, many leaders in the Massachusetts innovation community have been arguing that non-compete agreements should be eliminated. Many studies have shown that non-compete agreements reduce R&D investment and stifle innovation.
Inc Startups
MAY 15, 2017
Non-competes for salespeople and executives? For everyone else? HR/Benefits
Inc Startups
NOVEMBER 19, 2013
Thus you require employees to sign non-compete agreements so you can protect your trade secrets and your talent pool. I would think non-competes would be even more necessary in a business climate where the average length of employment is pretty short.
Inc Startups
OCTOBER 10, 2013
Rob Stevens, vice president of sales and marketing at GrabCAD, writes in Xconomy how non-compete agreements--contracts that keep employees from leaving your company to work with competitors--are bad for business. Some states, like California, do not bother with enforcing non-competes.
Inc Startups
JANUARY 19, 2012
Up this week: How to handle an employee who won't agree to a non-compete. Dear Jeff, I'm in the process of hiring a new employee and he says he will refuse to sign our standard non-compete agreement. So a non-compete makes sense.
Inc Startups
JUNE 15, 2016
Employees seen as paying the price for the advantages an employer gains
Austin Startup
MAY 9, 2018
Every so often, I get an email from an entrepreneur that starts something like this: “By reading further, you agree to the terms of our non-disclosure and non-compete agreement” My immediate reaction is to delete these emails with prejudice.
Inc Startups
JUNE 9, 2014
Non-compete agreements may be on the rise, but they''re not the best way to protect your business--for many reasons
OnStartups
APRIL 10, 2014
The Boston Globe reported this morning that Governor Deval Patrick will propose today a sweeping legislation to make it easier for workers in technology, life sciences, and other industries to move from job to job by banning the non-compete agreements companies use to prevent employees from jumping to rivals. There''s no evidence that abolishing non-competes has hurt them — quite the contrary. Here''s the irony: Non-competes do limit competition.
Inc Startups
APRIL 6, 2017
I do not need an NDA with someone I trust, and conversely, if I thought I needed an NDA to coerce silence, I would be really careful about what I shared. Startup
Force of Good: a blog by Lance Weatherby
NOVEMBER 13, 2010
While MMM makes it clear that the alert is not legal advice it is also clear they feel companies need to wait before creating new more restrictive non-compete agreements. Not too long ago John Yates and Morris, Manning & Martin launched MMM Tech Law. It's nice and they have a quickly growing MMM Tech Law LinkedIn group with over 1,200 members to go along with it. The group is a who's who of the Atlanta tech scene.
Feld Thoughts
APRIL 11, 2014
First, he’s proposing to ban non-competition agreements. Even though I often say that was 11 years and 364 days too many for my “non-big city, non-east coast” personality, Boston still has a sweet spot in my heart. The Massachusetts non-competition situation has always been stupid. In 2009, my partners and I at Foundry Group joined a coalition of VCs to try to eliminate non-competition agreements in MA.
Immersive Web
APRIL 17, 2008
Immersive Web Home About 18th Centurey British Textile Industry and Non-Competes In another chapter of “There is Nothing New Under the Sun”, we find a close comparison between the attempt to control information for economic superiority and the economic impact of free flowing information. Employment non-competes will end up like Britain’s — shackles that fail in the end.
Berkonomics
JANUARY 20, 2012
What is the rule about those pesky non-compete agreements signed upon discharge or sale of the previous company? The good news is that if you were not a significant (usually 5% or more) selling shareholder of a previous company, many states specifically exempt non-compete agreements signed between companies and their employees or minority shareholders. Entrepreneurs tend to remain in the business arena they came from.
Berkonomics
JANUARY 27, 2012
Certainly the buyer’s asset purchase documents included a non-compete clause, usually valid for two years from the date of the closing. Separate confidentiality from non-compete, and obey the confidentiality clauses. The non-compete agreement does expire when stated. Some clever buyers try to slip in an unlimited non-compete, and some courts have upheld this. Does the non-compete start anew upon the employee’s departure?
Startup Economy
JANUARY 25, 2010
Though his blog makes a case for why you need to be in Silicon Valley, that got me think about the non-compete agreement prevalent in MA. With the non-compete in place, employees can oly jump over ship to unrelated industry and are forced to forego the relevant experience built over time. If they were in MA, non-compete clause would've required them to work on something else that they cannot capitalize on previous experience.
Inc Startups
SEPTEMBER 30, 2015
The age of non-compete agreements is coming to an end. Here are better ways to make sure you don't lose top employees
Inc Startups
OCTOBER 25, 2016
38 percent of workers--from executives to wage staff--have been asked to sign a non-compete agreement. Here's what you need to know if you're ever asked to sign one
Inc Startups
OCTOBER 15, 2014
Have you ever considered that the person who made your sandwich is bound by a non-compete clause that''s stricter than your senior vice president''s clause
Force of Good: a blog by Lance Weatherby
OCTOBER 31, 2010
It's really a restraint of employee movement amendment via non-compete contracts that are currently not enforceable in Georgia. It is not what its supporters are telling you. Courtesy of Peach Pundit.
Early Growth Financial Services
JUNE 19, 2014
Restrictive covenants — Employers often use non compete and non solicitation clauses to retain employees. While non competes are not … Continue reading → Legal Why worry about employment law risks when you have enough things to focus on: building your team, getting traction, and lining up funding? Well, as the adage goes, “an ounce of prevention is worth a pound of cure.”
Force of Good: a blog by Lance Weatherby
OCTOBER 28, 2010
The proposed constitutional amendment will shackle employees to businesses, and strangle the present rights of employees to go out and work for competitors or start new competing businesses. You’d never know it by reading the ballot question, but the proposed constitutional amendment relates to “non-compete agreements.” Employers may already force non-compete agreements on employees -- as long as the agreements are reasonably limited in time, geography and job description.
A VC : Venture Capital and Technology
JANUARY 11, 2015
There was no NDA or non-compete between the parties involved so it is not clear that anything illegal transpired here. At the end of the Berlin talk I posted yesterday, there was a question about ethics. It was directed at startups and how they build a culture of ethical behavior. But ethics and morals is an issue that extends beyond startups. It is an issue for all businesses and business people. The Gotham Gal recently told me a story about one of her portfolio companies.
Startup Professionals Musings
SEPTEMBER 1, 2018
Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Expand core competency and solidify strengths.
Texas Startup Blog
JUNE 21, 2010
Valleywag recently reported that Doubleclickers got screwed by Google when they asked them to sign non-competes and then terminated them a week later. First, I am not a lawyer and I don't play one on TV. Do no evil, eh? Anyway, Valleywag reported that these
VC Ready Blog
JULY 23, 2009
Yesterday VCRLG attended the Boston Bar Association’s “Freedom to Compete?” symposium on the current debate in the Massachusetts’ legislature about limiting or prohibiting the use of employee non-competition agreements in Massachusetts. William Brownsberger (who was on the panel) and Lori Ehrlich, that would prohibit non-competes in some employment relationships and otherwise limit when non-competes could be used and what restrictions could be enforced.
Startup Professionals Musings
AUGUST 7, 2013
Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.
YoungUpstarts
SEPTEMBER 20, 2016
Whether a business is contemplating entering into a partnership, hiring a service provider or in the process of selling itself, a non-disclosure agreement should be utilized when information is shared with third parties. by Tej Prakash, co-founder of ShouldiSign.com.
Inc Startups
APRIL 11, 2014
Goodbye, Non-competes? Massachusetts Governor Deval Patrick proposed legislation to eliminate non-compete agreements in his state. A roundup of the day''s news curated by the Inc. editorial team to help you and your business succeed.
Startup Professionals Musings
JULY 10, 2012
Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.
YoungUpstarts
DECEMBER 10, 2015
Anytime you decide to bring in someone who does not have a stake in your business idea you should have them sign a binding Non Disclosure Agreement or NDA before you tell them or show them a thing. Non-compete Agreements Before and After Hiring.
Startup Professionals Musings
MAY 2, 2011
Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.
Startup Professionals Musings
OCTOBER 8, 2013
Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies. Rather than push non-compete agreements on your superstars, it’s more productive to create incentive systems and creative ways for them to work more independently, just for you.
Startup Professionals Musings
APRIL 6, 2015
Use caution to avoid employer conflicts of interest and non-compete clauses. A common challenge faced by every entrepreneur is that they don’t have the bandwidth, interest or skills to do everything that is required to build their startup.
Inc Startups
NOVEMBER 29, 2012
Assume that your separation agreement will have a non-compete clause, and make sure you understand the terms of it. The non-compete should related to your company’s business specifically, and should not prohibit you from other types of ventures.
Startup Professionals Musings
JUNE 21, 2012
Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions.
Force of Good: a blog by Lance Weatherby
OCTOBER 30, 2010
Benjamin Fink of Berman Fink Van Horn has a very well thought out and footnoted article over on Georgia Non-Compete and Trade Secret News (who knew there was such a thing) titled. Georgia’s New Non-Compete Statute: Is This-legislation Good For Business In Georgia? The new legislation also runs contrary to a trend taking hold in other states with which Georgia would like to compete.
Startup Professionals Musings
JANUARY 15, 2018
Use caution to avoid employer conflicts of interest and non-compete clauses. In my experience, the initial idea for a new product usually comes from a single entrepreneur, but the implementation plan for a new business requires a team, or at least a co-founder. The reason is that any one person rarely has the bandwidth, interest, or skills to manage all the tasks required to build a business. Thus I find that two heads are usually better than one in a startup.
Startup Professionals Musings
SEPTEMBER 1, 2012
Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies. Rather than push non-compete agreements on your superstars, it’s more productive to create incentive systems and creative ways for them to work more independently, just for you.
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