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I'm trying to establish myself as an iPhone freelancer, and are currently negotiating with a startup about a bigger project. They have expressed that they want me to sign a non-competition agreement, so that I wouldn't be allowed to develop a similar product for companies in competition on the same geographical market. Needless to say, I don't really like this.
Is this a common practice? If so, how common? Would you sign it?
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Know Your Rights And How To Negotiate Although it's your right to refuse to sign a non-compete agreement, by doing so you may lose your job offer or be terminated. As a consequence, employees end up signing the agreement because they need money, health insurance, and other company-provided benefits.
Employers may ask employees to sign non-competition agreements to keep their place in a market. Those asked to sign non-compete agreements can include: Employees. Consultants.
Typical agreements are two years or less, the most common being six months to a year. They can also include a severance option if the employee is terminated. Scope: This clause must be specific as to the restricted work and particular services.
Tell your client to actually negotiate the agreement. Employees often think non-compete agreements are non-negotiable, but if you are a highly coveted employee and they really want to hire you, this is the time to negotiate these agreements! Be Transparent.
They're common. If you can get them to remove it, do so. It's never in your interest to have one. That said, they aren't terrible if they are narrowly scoped and of a reasonable time limit. You don't want one saying you cannot write any other iPhone apps. One saying you can't write the same sort of app is probably acceptable. Read the language and determine how broadly it can be viewed.
Whether you end up having to sign one or not depends largely on the power in the relationship. If you really need the work or if your skills can't command a lot of respect, you'll have to sign. If, on the other hand, you bring unique skills and the company really wants you, you have leverage and can likely get it removed.
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