Reading the Roanoke Times today is depressing. The front page article is entitled, "Volvo to lay off at least 650 workers." The story recounts that Volvo has reduced its work force from 3,170 in late 2006 to less than 1,000 by May of 2009. The business section includes an article about thousands losing their jobs at IBM Corp., Intel, Sprint Nextel Corp., Hewlett-Packard Co., Microsoft, and Texas Instruments just to name a few. Tough times indeed!
To those employees facing termination or furloughs, I offer one piece of advice. Be careful what you sign on the way out of the door. Don't sign new or expanded noncompete or nonsolicitation agreements. To do so may limit your job options in the future. Don't take the first severance package offered without giving sufficient thought to your specific situation.
My Take: The economy will improve...just be careful out there!
Wednesday, January 28, 2009
Tuesday, January 27, 2009
ROANOKE TIMES NEWSPAPER ANNOUNCES WAGE FREEZE AND FURLOUGHS
Everyone knows we are facing difficult economic times in the U.S. The newspaper industry has been hit especially hard. Newspapers face decreased readership, increased costs, decreased ad revenue as more and more companies advertise on the Internet.
Well, the bad news hit Roanoke today as The Roanoke Times announced a company-wide wage freeze and a 5 day employee furlough to reduce expenses.
Why do I write about this news? Because many of those effected employees may be asked to sign (or have already signed) noncompete agreements. Others may be laid off or fired and presented with a severance package which should be closely reviewed and considered BEFORE signing.
My Take: Those employees (and there will be many) effected by these cutbacks should proceed cautiously if presented with onerous noncompete agreements and unfair severance packages.
Well, the bad news hit Roanoke today as The Roanoke Times announced a company-wide wage freeze and a 5 day employee furlough to reduce expenses.
Why do I write about this news? Because many of those effected employees may be asked to sign (or have already signed) noncompete agreements. Others may be laid off or fired and presented with a severance package which should be closely reviewed and considered BEFORE signing.
My Take: Those employees (and there will be many) effected by these cutbacks should proceed cautiously if presented with onerous noncompete agreements and unfair severance packages.
NEW (FREE) BOOK ON NONCOMPETE LAW IN VIRGINIA
Who said there is "no such thing as a free lunch"? I know we didn't.
Lauren and I have been hard at work the last few months writing a book which reviews the law in Virginia on noncompete and non-solicitation contracts. The book is written from the perspective of the employee and suggests legal ways to "beat your noncompete."
We hope the book will be ready by March, so stay tuned for the announcement which we will place on this blog. And best of all, the book will be free to residents of Virginia.
Lauren and I have been hard at work the last few months writing a book which reviews the law in Virginia on noncompete and non-solicitation contracts. The book is written from the perspective of the employee and suggests legal ways to "beat your noncompete."
We hope the book will be ready by March, so stay tuned for the announcement which we will place on this blog. And best of all, the book will be free to residents of Virginia.
Friday, January 23, 2009
FIRED OR LAID OFF...NOW WHAT?
In these tough economic times, many people will lose their jobs as companies downsize during these dark financial days. What should you do if your employer fires you or tells you that you are being laid off for an undetermined period of time?
The first thing to do is catch your breath and don't sign anything too quickly. If you are presented with a severance package...take the time to read it closely and discuss its legal implications with an attorney. If you are asked to sign a noncompete or non-solicitation or non-disparagement agreement, PROCEED CAREFULLY!
These agreements can have long-lasting effects. And many of these agreements are subject to negotiation with your soon-to-be ex-employer.
The first thing to do is catch your breath and don't sign anything too quickly. If you are presented with a severance package...take the time to read it closely and discuss its legal implications with an attorney. If you are asked to sign a noncompete or non-solicitation or non-disparagement agreement, PROCEED CAREFULLY!
These agreements can have long-lasting effects. And many of these agreements are subject to negotiation with your soon-to-be ex-employer.
Tuesday, January 20, 2009
SURVIVAL GUIDE - PREPARING FOR A LAY OFF
Our local paper, the Roanoke Times, published an article on Sunday called Economic survival guide: Preparing for a layoff
Economic Survival Guide
The Reporter asked a series of questions to local employment experts. While I agree with their responses - I don't think they went far enough. My unsolicitied answers, are in bold.
Q: Should I be looking for another job while I’m still employed?
A: Many people do, but doing so during work time can be considered a firing offense by some employers, according to Dan Summerlin, a lawyer who specializes in workplace issues at Woods Rogers in Roanoke. "I’d strongly recommend that employees looking for work do it on their own time," he said.
WAIT - you certainly shouldn't try to start your own business, or compete while stile employed. HELLO - NON COMPETE. DUTY OF LOYALTY. It may be one thing to read the classifieds, but certainly DO not go the extra step to start your own business if you have a contract that prohibits that. Also - don't talk to co-workers about it either. Conspiracy claim anyone?
Q: If my boss or human resources department calls me in to give notice, how should I react?
A: Maintain a professional attitude as if you were a new applicant. Try to show confidence and be ready with a wish list. For example, see if the termination date is negotiable; once you have agreed to go cooperatively, the company may be amenable to a slower exit. And if severance pay is being offered, there’s no harm in asking for a bit more. Do the same about insurance benefits. And get everything in writing without being testy.
SEVERANCE PAY USUALLY MEANS SEVERANCE AGREEMENT. Please don't sign on the dotted line without reading the agreement, and understanding what it really means. It is very important to know what you are being asked to sign.
Q: After I turn in my employee identification card and hit the door, what then?
A: After filing for unemployment pay, make an organized push to find work. Set a minimum number of prospective employers you will contact daily. Network with previous colleagues, including those in the job that just ended. Refresh your resume and use all the personal communication skills you can summon. Be someone you would want to hire.
AGREED - but what if you had a non-compete? In a tough economy, your former employer may be more willing to let you out of it. Ask for a release.
Economic Survival Guide
The Reporter asked a series of questions to local employment experts. While I agree with their responses - I don't think they went far enough. My unsolicitied answers, are in bold.
Q: Should I be looking for another job while I’m still employed?
A: Many people do, but doing so during work time can be considered a firing offense by some employers, according to Dan Summerlin, a lawyer who specializes in workplace issues at Woods Rogers in Roanoke. "I’d strongly recommend that employees looking for work do it on their own time," he said.
WAIT - you certainly shouldn't try to start your own business, or compete while stile employed. HELLO - NON COMPETE. DUTY OF LOYALTY. It may be one thing to read the classifieds, but certainly DO not go the extra step to start your own business if you have a contract that prohibits that. Also - don't talk to co-workers about it either. Conspiracy claim anyone?
Q: If my boss or human resources department calls me in to give notice, how should I react?
A: Maintain a professional attitude as if you were a new applicant. Try to show confidence and be ready with a wish list. For example, see if the termination date is negotiable; once you have agreed to go cooperatively, the company may be amenable to a slower exit. And if severance pay is being offered, there’s no harm in asking for a bit more. Do the same about insurance benefits. And get everything in writing without being testy.
SEVERANCE PAY USUALLY MEANS SEVERANCE AGREEMENT. Please don't sign on the dotted line without reading the agreement, and understanding what it really means. It is very important to know what you are being asked to sign.
Q: After I turn in my employee identification card and hit the door, what then?
A: After filing for unemployment pay, make an organized push to find work. Set a minimum number of prospective employers you will contact daily. Network with previous colleagues, including those in the job that just ended. Refresh your resume and use all the personal communication skills you can summon. Be someone you would want to hire.
AGREED - but what if you had a non-compete? In a tough economy, your former employer may be more willing to let you out of it. Ask for a release.
Wednesday, January 14, 2009
A LITTLE FREE LEGAL ADVICE
If your next (or new) employer asks you to sign a noncompete agreement, take at least the following steps:
1. Ask the employer to modify the language so the noncompete lasts no more than 6 months to 1 year and is limited to actual, existing clients with whom you have direct contact.
2. Ask the employer to provide you with severance benefits (maybe a percentage of your salary) for one-half of the time you are prevented from working as a competitor under the noncompete agreement.
If your new employer is unwilling to treat you fairly on the front end of the relationship...you can bet they will be difficult on the back end.
1. Ask the employer to modify the language so the noncompete lasts no more than 6 months to 1 year and is limited to actual, existing clients with whom you have direct contact.
2. Ask the employer to provide you with severance benefits (maybe a percentage of your salary) for one-half of the time you are prevented from working as a competitor under the noncompete agreement.
If your new employer is unwilling to treat you fairly on the front end of the relationship...you can bet they will be difficult on the back end.
Tuesday, January 13, 2009
LAY OFFS MEAN EMPLOYMENT CONTRACT ISSUES
I just spent the last 10 minutes reading about all of the lay-offs in the Roanoke Valley. Our local paper, the Roanoke Times, has cataloged what businesses have been letting people go. It is not good news, and I am sure, we are no where near the end of the cycle.
So what if you signed a non-compete agreement, and now, are being told you no longer have your job? Is the contract valid? Are you really limited to where you can look for a new job? Or what if you are being offered a severance package and new terms of a non-compete? Do you have to sign? Does your employer have to give you a positive recommendation?
The answer to all of the above is - IT DEPENDS ON YOUR CONTRACT.
Some non-compete agreements apply only when the employee voluntarily leaves. Others apply regardless of why you end your employement.
As to severance packages - always think before you sign. Do you really need that money? Is everyone being asked to sign a non-compete upon leaving?
I know the last thing folks want to do when they lose their job is call an attorney, but it might be worth an hour or so of your time and money.
So what if you signed a non-compete agreement, and now, are being told you no longer have your job? Is the contract valid? Are you really limited to where you can look for a new job? Or what if you are being offered a severance package and new terms of a non-compete? Do you have to sign? Does your employer have to give you a positive recommendation?
The answer to all of the above is - IT DEPENDS ON YOUR CONTRACT.
Some non-compete agreements apply only when the employee voluntarily leaves. Others apply regardless of why you end your employement.
As to severance packages - always think before you sign. Do you really need that money? Is everyone being asked to sign a non-compete upon leaving?
I know the last thing folks want to do when they lose their job is call an attorney, but it might be worth an hour or so of your time and money.
KUDOS TO MASSACHUSETTS
I tip my hat (although I don't wear one) to the state of Massachusetts. It appears that Massachusetts, much like California before it, realizes that non-compete agreements are bad for the U.S. economy...bad for innovation...and bad for employees.
Massachusetts Representative Will Brownsberger filed a bill today calling on the state legislature to outlaw the non-compete agreements that prevent many Massachusetts residents who leave their employers from finding work at similar companies.
Massachusetts Representative Will Brownsberger filed a bill today calling on the state legislature to outlaw the non-compete agreements that prevent many Massachusetts residents who leave their employers from finding work at similar companies.
Thursday, January 8, 2009
MERRILL LYNCH'S CHIEF BROKER QUITS
Robert McCann, the brokerage chief at Merrill Lynch & Company is leaving the securities firm just after its purchase by Bank of America. I ran across this news item in yesterday's Wall Street Journal. According to sources identified in the article, the departure was unexpected.
Wonder why this happened? We may never know all of the details or all of the reasons behind Mr. McCann's departure. Is it possible McCann doubts the new alliance between Bank of America and Merrill Lynch will work? Is it possible that McCann was unwilling to sign a noncompete agreement which would have prevented him from "competing" with Bank of America if he left the firm? Wonder if McCann was presented with the same noncompete agreement that was forced upon the thousands of lower level financial advisors at Merrrill?
I bet we hear more about this story.
Wonder why this happened? We may never know all of the details or all of the reasons behind Mr. McCann's departure. Is it possible McCann doubts the new alliance between Bank of America and Merrill Lynch will work? Is it possible that McCann was unwilling to sign a noncompete agreement which would have prevented him from "competing" with Bank of America if he left the firm? Wonder if McCann was presented with the same noncompete agreement that was forced upon the thousands of lower level financial advisors at Merrrill?
I bet we hear more about this story.
Wednesday, January 7, 2009
THE AMOEBA DEFENSE TO NONCOMPETES
Lets go back to middle school science for this one. Do you remember what an "amoeba" is? How about a a genus of protozoa (cells) that moves by means of pseudopods. Enough science...but how is this connected to defending against unfair and restrictive noncompete agreements?
The connection is provided by the Henrico County Circuit Court decision in Lawrence v. Business Communications of Virginia, Inc. In that case, Business Communications made its employee sign a noncompete agreement which prevented the employee from working in the business of selling cellular phones, pagers, and long distance service for a period of 2 years within 50 miles of any business location operated by Business Communications. The "twist" in this noncompete agreement is that it provided the agreement would remain in full force and effect during the employee's employment with Business Communications and for a period of 2 years after the termination of the employer-employee arrangement.
The court found the agreement to be overly broad and unenforceable. Why? Because by its terms the geographical area could potentially grow like an "amoeba" after the termination of the employment arrangement. In other words, the employee could work in an area outside of the 50 mile radius today but tomorrow (and within the two year period) Business Communications could open a new store and prevent the employee from working in what yesterday was an acceptable location.
My Take: This decision (rarely noted or discussed) may wreak havoc with most noncompete agreements!
The connection is provided by the Henrico County Circuit Court decision in Lawrence v. Business Communications of Virginia, Inc. In that case, Business Communications made its employee sign a noncompete agreement which prevented the employee from working in the business of selling cellular phones, pagers, and long distance service for a period of 2 years within 50 miles of any business location operated by Business Communications. The "twist" in this noncompete agreement is that it provided the agreement would remain in full force and effect during the employee's employment with Business Communications and for a period of 2 years after the termination of the employer-employee arrangement.
The court found the agreement to be overly broad and unenforceable. Why? Because by its terms the geographical area could potentially grow like an "amoeba" after the termination of the employment arrangement. In other words, the employee could work in an area outside of the 50 mile radius today but tomorrow (and within the two year period) Business Communications could open a new store and prevent the employee from working in what yesterday was an acceptable location.
My Take: This decision (rarely noted or discussed) may wreak havoc with most noncompete agreements!
Subscribe to:
Posts (Atom)
Posts
