Non Compete Clause

[Nikki C]

Does anyone have a good reason as to why I would want to sign one? I am 99.9% convinced that the 2 year/10 mile radius contract that my employer wants me to sign is not in my best interest. I just started this spa job (see my spa job vent post) and after two weeks I am hit up with this. I haven't even finished school yet. Should I try and renogoiate (sp)and if so to what? I don't even know what is standard. I am pretty sure I know how this is gonna end for me but I would like to here ideas, anyone?
Thanks

 

[Wavy14]

NO! RUN!

Seriously, I know I have seen comments and threads on here about non-compete clauses. They are illegal in many states. Besides, what happens if you don't like working at this spa :wink:
You are not even doing MT work there (if I recall correctly from your other thread) and they are asking you to sign this?!
Search the Business Ethics section for some info on this. And I am sure some other folks can give you some good advice.

 

[dancergirl]

A 10 mile radius??? That is a by far a bit much. I worked at one place that after I left I couldn't work within 2 miles of them for one year.
10 miles.....I would run as well.

 

[Alessandro]

I agree with everyone else, NO NO NO

Steph!

 

[Rodina]

uh, no thanks. if it was a condition of employment, it should have been done before you actually started any work.
palpable makes a good point. you're a receptionist/spa coordinator. so if you sign the document, does it mean you cannot be a receptionist within 10 miles?

 

[xenonoh2]

A 10 mile radius??? That is a by far a bit much. I worked at one place that after I left I couldn't work within 2 miles of them for one year.
10 miles.....I would run as well.

my school has a separate day spa that students can work at once they get their temporary license. their contract has a 50 min radius non-compete clause! i think i heard it's in effect for 3-5 yrs! :shock: :shock: :shock: :shock: i'm so glad i don't work for them!

 

[Pompal 09.]

uh, you're a receptionist/spa coordinator. so if you sign the document, does it mean you cannot be a receptionist within 10 miles?

Yep, no reception work or anything else in a spa or salon or even in a private home. So it looks like 100% of you agree. I thought so, but being new to the industry I wanted to make extra sure I wasn't missing something. I am off to work and I will be sure to let you know how it all turns out at the end of the day.
Thanks to all of you.

 

[cheetaking243]

I agree with the others here, I wouldn't sign it either. I can't imagine them even requesting that you (as a receptionist) are being asked to sign one!
I've been asked to sign once as a condition of employment at a salon I was interested in working from... the minute the owner said that... I was no longer interested! I live in a small city of less than 10,000 people. If I was to sign something like that I'd probably have to move to a different city, because there really isn't much else within driving distance if you can't work within 10 miles of your former place of employment!
Yes, I've heard "horror stories" from owners about how a MT came to work for them and then took all the clients/records when she left.
*shrug* I don't think they understand the nature of the business... our work is very intimate, and our clients can become very attached to us. I don't think it's shocking at all that they want to follow us when we move to a new location! Contracts should be made with that provision if it's an issue, however, as a receptionist, IMHO, that does not apply!
My niece is a nail tech, she signed a non-compete when she went to work for this one salon and after a few months she just couldn't take the catty nature of their employees so decided to leave the place. She moved across town and I believe 2-3 of her clients from the old place followed her to the new one. The owner of the salon threatened to take them to court over the couple clients who had badgered her new location out of her. It didn't amount to anything though. *shrug* I still wouldn't do it...
I agree with palpable, Run!

 

[Mr Night]

my school has a separate day spa that students can work at once they get their temporary license. their contract has a 50 min radius non-compete clause! i think i heard it's in effect for 3-5 yrs! :shock: :shock: :shock: :shock: i'm so glad i don't work for them!

truly unbelievable :shock:
nice way to encourage your new graduates.

 

[Stuart H]

i meant 50 miles not 50 mins. you would have to drive to another city to massage. i've heard these clauses don't hold up in court. there is no way i would sign a contract with one in there.

 

[Dunyah]

Hi guys, I have read numerous articles about non-compete clauses, and I'm very sorry I don't have any links or anything to them.
The number one thing I do remember about them is that they have to be REASONABLE to be legal, and therefore, enforceable.
The other thing is that they are basically worthless unless the former employer is going to go the lengths of suing you, and then the original contract has to be found to be legal(reasonable). And, the party suing has to show how their business has been damaged by you. VERY difficult in our business.
A HUGE majority smaller businesses just make up their own contracts and rely on your ignorance to follow the word of the contract, in the hopes you won't "compete" with them.
My advice, for what it is worth, and that is not much (I'm an LMT, not an employment attorney): If it is a place you really, really, want to work, I wouldn't even mention the non compete clause and just sign it, they will most likely never enforce it, and it is probably unenforceable anyway. Plus, I don't see how a non-compete clause can apply to a receptionist position.
Noel
(I will try and look for some articles about this)

 

[Pompal 09.]

If it is a place you really, really, want to work, I wouldn't even mention the non compete clause and just sign it, they will most likely never enforce it, and it is probably unenforceable anyway.

I'm not sure why someone would really, really want to work in a place that was restrictive and untrusting.

I would also question the ethics of someone who would knowingly sign something that they never intended to abide by. I think it is far better and more ethical and speaks to who you are if you are honest with the potential employer and share the reasons why you'd really like to work there, but that the non-compete clause has you concerned because it will severely limit your ability to work close to your home if you should decide to depart ways for some reason. If you state that you are an ethical person and therefore cannot sign something that you may not be able to abide by, but that you absolutely in no way intend to steal clients, and that should you leave their employment, you will not be taking any client lists or personal information with you.....one would hope the employer would see that you are honest and might be an asset to their business. If they can't, then perhaps this is not the place for you.

Just my 2 cents.

 

[gh_alban27]

We have a non-compete contract at our clinic which held up in court the one and only time we were forced to sue someone. Our non-compete is very reasonable. It does not in any way restrict where you can work. You can work right across the street from us if you so choose. What is does restrict is our clients. You are not allowed to solicit business in any way from our existing clientelle once you leave our employment for the period of one year. This includes telling them where you plan to move on to before you leave.

The reason for this is simple. We invest money, time and effort to bring in the clients. Our therapists are employees. We provide everything for them, including advertising. We have over the years had therapists who come to work for us solely for the purpose of building a clientelle and then leaving with them.

All of our prospective employees are told about the non-compete up front during the interview process and are told that signing it is required to work at our clinic.

Non-competes protect the business but they shouldn't be too restrictive. The one mentioned in this thread is definitely too restrictive and probably wouldn't hold up in court.


Angie

 

[anlibeth2000]

We have a non-compete contract at our clinic which held up in court the one and only time we were forced to sue someone. Our non-compete is very reasonable. It does not in any way restrict where you can work. You can work right across the street from us if you so choose. What is does restrict is our clients.

This seems really fair to me and I would not have a problem with something like that. However since I am using some of my neighbors as practice clients (in their homes) and the spa is also in my neighborhood they are considered off limits to me outside the spa. From graduates I have spoke to it seems to be very rare to actually turn any of your practice clients into paying ones, but I was hoping I could keep one or two. As for just ignoring it and signing I am afraid I just don't have it in me. I would feel weird signing onto something I know I didn't believe in. I think I may give these people the benifit of the doubt that they don't know how much they are asking for and see if its renogotiable. I'll let you know how it goes.

 

[Karim Nassef]

From graduates I have spoke to it seems to be very rare to actually turn any of your practice clients into paying ones, but I was hoping I could keep one or two.

all of my practice clients (friends) are my paying clients now. i didn't get any from my internship at the school's clinic.

 

[nicepuddin]

Which is why Spa pay should be less than 50%

I don't think they understand the nature of the business... our work is very intimate, and our clients can become very attached to us. I don't think it's shocking at all that they want to follow us when we move to a new location!

If you believe this is true, then you should not expect to earn more than 40% of a treatment.

Advertising and promotion expenses run about 15% - 20% of revenue. That is money spent bringing in clients, who you think should be allowed to follow you when you leave. I agree with moogie on this. The employer is spending the money to bring the clients.

If you are paid 50% of a service, yet the A&P dollars will only benefit you in the long run, then you are accounting for 60%-65% (allowing for those who don't follow) of total costs. No spa can survive those economics!

 

[Digital Age]

Just ran across a few old threads that have some talk about non-competes... adding them as a cross reference:

May have a job opportunity.
http://www.massageplanet.com/forum/viewtopic.php?t=1170

wording on a Non Compete
http://www.massageplanet.com/forum/viewtopic.php?t=1332

Confused! What would you do?
http://www.massageplanet.com/forum/viewtopic.php?t=1349

 

[DanielCude]

NO!!!

Never in a million. What are they offering you besides loss of control ? Getting a license is so you can have control, to say where and when you choose to massage when to help and where.
What if they don't like you? What if you dont like them? What if you gett a better offer or have a chance to make a real difference next door?
You would be biting the hand that feeds you YOUR Own.
Did they spend time, money hard work to get your license- No look out for yourself.

 

[Indian Dude 713]

Well heres the latest update. Putting the non compete aside I have been at this spa 6 weeks. Being on the inside and seeing how it is run I know for sure I do not want to work there as an mt when I graduate. I won't even get into all the crap that goes on there, but its toxic. (to your soul anyway). Alot of turmoil and distraction going on there. My one on one with managment was coming up next week when I would have to sign or go. I chose not to sign and to give notice today. I told them it just wasn't a good match for me. So true. I feel lighter tonight then in a long time. I am glad I had the chance to research from within while still in school. I may be jobless now but at least I am following my heart on this one. Now I can concentrate on school again.
Thanks everyone.

 

[jronnie22]

t056

Way to go SeattleSunshine! I'm glad you got to taste the spa life while you were still in school... and see that it's not for you. Glad you didn't sign the non-compete clause! Wishing you the best as you head towards graduation!