Covenant Not to Compete
We are constantly receiving “amendments” to the employee handbook that we are required to agree to. If we do not agree to these amendments, we are potentially subject to termination.
The most amusing amendment I received was the requirement to sign a covenant not to compete. This is a contract that you sign, that basically says “If I quit my job here, or if I am fired, I will not take on another job in any function that may take business away from the company.”
It should also be noted, that several employees have since left the company, at which time an investigation was performed to determine their new place of business, for the SOLE PURPOSE of notifying their new employer of their signing a covenant not to compete.
Included in the wording was the employees agreement that he or she would not divulge any trade secrets that the company has.
When someone inquired as to these so-called “trade secrets,” upper management said the following:
“For example, we use Microsoft Excel Spreadsheets in conducting business each and every day. You would not be allowed to do so at your new job.”
Because apparently, this company invented the excel spreadsheet. Crazy! This entire time, I was working for Microsoft, and I never knew it!
The bulk of the contract basically says that we would not be allowed to conduct business with any retail insurance agents that are currently contracted with the company.
…We are a wholesale brokerage whose book of business includes over 30,000 retail agents. Do ex employees receive a phonebook-sized list of these agents so they’ll know who NOT to work with? I didn’t think so.