Is it typical to be asked to sign a non-compete when accepting a corporate counsel position? Aside from
1. Being insanely broad in the fields from which I’d be precluded from working
2. Covering the entirety of any country it which employer operates
3. Applying whether I quit or they fire me, this seems truly unnecessary. I’m not in sales and taking my customers elsewhere.
Has anyone else seen this?
General Counsel Responses:
- That sounds totally unenforceable.
- They did. And they knew it wasn’t enforceable. When it comes to corporate you just go along so everyone can check their boxes off and move on.
Counsel Responses:
- I’m going in-house and they’re requiring one from me.
- I didn't sign one when I moved recently.
- They're not enforceable against attorneys since clients have the right to choose their legal counsel. Yes, that includes companies and who they hire as their in-house lawyers.
- I’ve seen them enforceable only when tied to vesting equity. In other words, if you break the agreement, you lose some portion of invested equity or some such. I would definitely ask the HR rep or hiring manager about the agreement regardless - makes you look like a good attorney.
- I doubt they even differentiate between the positions. I just signed the standard EE agreement. I’m not concerned about it limiting my future mobility.
- I have signed these in the past, knowing they are generally not enforceable. Many companies have a standard form they make all employees sign. I was also aware the particular companies I worked for did not have a history of trying to enforce them against employees in any department.
- Yeah, this sounds like an HR dept that sends these out as a scare tactic, despite having been told it’s entirely unenforceable. Depending on who you’re negotiating with on compensation, it could be a chance to squeeze the lemon a bit more. Otherwise, sign it and forget about it.
- I didn’t sign one.
- I did sign mine, but figured it is unenforceable so I didn’t care.
- The provision is unenforceable across all states and HR depts. Companies know this fact - but they aren’t prepared to create employment agreements tailored to attorneys. Note, however, that they may couple this provision with a non-solicitation provision w/r/t fellow in-house colleagues if you leave and attempt to recruit from your prior employer.
Associate and Attorney Responses:
- Don't professional rules say that non-competes are unenforceable against attorneys?
- I didn’t sign one.
- Is this enforceable?
- I signed mine knowing it’s unenforceable against me.
- I signed one, I think all employees at a certain level at my new company have to sign them, but they’re of questionable enforceability especially for attorneys.
- I'd first try not to sign. Then I would limit the geographic scope and duration. And then I might sign. But first I'd ask to talk to the in-house attorney who drafted it to see if they signed it.
- Depends on the state, but generally unenforceable.
- I wasn’t asked to sign one in my role but I know a friend had to sign one.