Non Compete clause.....is This Too Much?

Just my 2 cents, I work as a consultant, signed the non-compete, and I will not be allowed to work with certain clients for 2 years if I go to a competitor. That is very extreme but common practice. I tried to do a bit of research for you but I have found that it appears to be ok unless you negotiate something new when you leave the salon.
Good luck, V

When I took a business law class (as a business student - I'm not a lawyer) we learned that non-compete clauses are often not enforced and may often be unenforceable, because they often make the person unable to make a living. It's just not a fair consideration, and that would be part of what a judge would look at - would any reasonable person think that job was so fabulous someone would be willing to (exaggerated example) move to another state when they leave? It's not like you are some sort of millionaire CEO, you're just a working person. Are you supposed to take up some other career for two years after you leave?

Personally I would either not sign it, or talk to a lawyer first if you really want this job. (but I'd be willing to bet money that former employees are not sticking to the terms.)

It sounds like this agreement may not be in your best interest. But please seek legal advice before you act on any of the information you've been given on this site. Some of it may not be legally accurate.

When you sign a contract in which you agree to certain employment terms -- and then you break the terms -- you can be sued for breach of contract. It has nothing to do with whether a judge thinks the terms are "unfair" or "you can't stop someone from making a living." The judge will rule on whether you willfully acted in conflict to the terms you agreed to. Every individual is held legally accountable for any contract she/he willingly signs. It's as simple as that.

I hope things work out for you. Good luck.

I can't comment on your specific situation at the salon, but I can tell you what I learned from spending the money on an Employment Lawyer...

I hired the lawyer to review one of my Non-Compete Contracts (prior to signing) and look for loopholes, etc., I learned that a company can legally put a wide variety of restrictions on you -- and enforce them. Unfortunately, if you don't like the terms, don't take the job. In fact, I was asked to sign 6 months after I joined the company...but the lawyer determined that I either had to sign or quit. I had no legal grounds to fight having to sign it, even through I was originally hired without it. My Non-Compete had very specific terms about not being able to accept a position with a direct competitor for one year.

However...one thing my Non-Compete outlined was what would happen if the company laid me off. Clearly, if they laid me off, but I could not go to a competitor, I would struggle to find a new job. Hence, my Non-Compete outlined that the company would pay me X months of salary in a "termination without cause" situation.

Read your non-compete and ASK about the terms of the contract if you are terminated without cause (layoffs, etc.) You need to protect yourself.

Did it state this when you applied for the job or was it added recently. It is probably in the police of being hired. Ether way if you have good clients they really want to see you they would probably still come see you regardless where your at.

I will be opening up a salon soon and I will most definitely have my new employees sign a non-compete form. And I don't think the information is unreasonable, but I would change it to 5 years. It's just a good business practice because even though YOU may know that you would never open up a new business and take customers with you, the OWNER of the business you work in doesn't know that. Even giving "your word" and a handshake is not good enough. I was burned before in a previous business (another field) by not having my receptionist sign a non-compete. I don't usually like to be burned twice.

My friend worked at a salon that had a 2 year/ 3-5 mile radius clause.

I think 15 miles and 2 years is ridiculous. Maybe 10 miles and ONE year. I would not sign it.

When I taught gymnastics they made everyone sign a non-compete. When people quit they tried to enforce it but no one can keep you from making a living so in the end it was not enforceable. Luckily I never signed it and it happened to be overlooked!

Either get them to change the terms or go elsewhere. That's ridiculous!

Ive been working at salons for 17 years and have never signed a non compete clause and was never asked to either. I wouldnt do that just in case you leave there for some reason and still want to work in the area. Dont sign it.

I work at a salon in a major city as a manager and they wanted me to sign a non compete for 5 miles and 5 years. 5 miles takes me completely out of the city and the main area for the industry. I refused to sign knowing I may lose my job even after 10 years of employment there. I consulted a lawyer and was told it maybe hard to for them to enforce but who can afford the legal costs? I recommend talking to a laywer in your area. good luck!

My Husbands boss told him it is to keep the employee from steeling business, but he couldn't keep him from earning a living if he left. If that is what you are trained to do they cannot keep you from another job. You could explain your concern and tell them you don't plan on leaving, this is your life and career. Best Wishes!

I worked for very large salon chain in the Chicago Land area and this was standard practice. Also from my experience, this is commonplace in that industry. I knew several people who left the company, started their own salon and the company went after them. Needless the say, the company always lost and the employees won. Basically a company cannot keep anyone from moving on with their career or prevent them from opening their own business. It's just a scare tactic. I am not giving your formal advice, I'm simply telling you what I known has happened. In fact, there's a salon in Geneva for this company I worked for and my friend opened her own salon in St Charles and she had worked for the company for 10+ years. They took her to court and she won. This is just 1 example of several that I've heard of with this company. This has all happened within the last several years too, so I'm not talking about things that happened years and years ago.

Do not sign! America was builded on a competive market.

I think 15 miles is huge unless you live in a rural area. I work in a different line of work and I have a noncompete clause of 5 radius miles for three years and I thought that was too much but all the other perks outweighed that.

15 miles seems crazy to me.

Fifteen miles is not too much. i drive 15 miles to get to my stylist because I really like her. The part that I think is extreme is the 2 year part. If you leave a salon within 6 months you clients have either found out where you went or they have found someone else.

Good Luck

Just remember that if you choose to sign and later need to get out of the non-compete agreement, you'll need a lawyer, regardless of whether or not the agreement is enforceable. We just went through this about nine months ago :)
Best of luck!