Non-Compete after the fact

KCHR

I work for a conglomeration of staffing firms that has been inconsistent in having new internal employees sign non-compete agreements. The inconsistency stems from a new manager, who signed one when she started, but has neglected to have any of the staff she has hired subsequently sign one. These staff are privy to clients, bill rates, etc., information they could take to another staffing firm that could cause us significant financial harm. Can I have them sign such an agreement after the fact?

marc

Well, you can ask and you can make it a condition of continueing employment - but if anyone refuses, be ready to terminate.

Also, the manager who neglected the non-compete condition should be considered for discipline.

TN HR

No good. Non-competes are already too swiss-cheese as is. Terminate someone because they refuse to sign one and I think you have a tiger by the tail.

Don't kid yourself that the client information is so secretive. It's not. I share my bill rates freely (28% payroll only, 30% light industrial skill sets and 38% for everything else). Where I operate, eveyone knows what everyone else is paying. Your industry has been blitzed by the "walmart" low-price mentality so prevalent in our society today. How low can you go?

Shadowfax

I think you are really talking about two different things: non-competes, and confidentiality requirements. The non compete prohibits the ex from working for someone else in the same field, nearby area, for some specified period of time. They are suspect in most states, and subject to great scrutiny, and for good reason. Confidentiality agreements however can be more useful if you indeed have information that is trade secret or proprietary. HOwever, if any of the infor you wish to protect could be learned by other source, then you have nothing to protect in any event. Not a bad idea to have a confidentiality requirement:it puts people on notice and may have some moral effect. Enforcement may be another matter. Non competes however, should be required much less often, and only in areas where you really have statutory blessing. Enforcement of these is much more problematic. You should really be talking with your labor counsel.

Pricehcs

Agreed, it sounds like you're describing a trade secrets agreement vs. a non-compete. You can put these in place after employment begins. Have your legal council draft up an agreement based on the specific business items you wish to protect.

As for a non-compete agreement, you could also put this in place after employment begins, but in order for it to even have a chance of having any teeth, a) it would have to have reasonable limitations as to time, geographical area and scope of activities, b) it can't impose a greater restraint than is necessary to protect the goodwill of your company, and c)your company would have to deliver significant confidential information immediately (at the time the agreement is signed) as well as provide significant consideration to the employee (read $$$) in exchange for their signing the agreement. Otherwise your non-compete agreement won't really be worth any more than the cost of the paper it's printed on, much less stand up in court.

#1 thing a consultant shouldn't say: "I could tell you the answer right now, but we're committed to a three month project..." #-o