No-Compete Clause
Posted By: MT In A Panic on 2007-09-13
In Reply to:
I need help making a decision and I don't know who to ask. My company recently had a layoff, and in order to receive my severance, they are asking that I sign a form that states that I will not work for a competitor for the next 12 months--basically stating that I will not begin to work for any company in the MT business and that I will not try to start my own business. The severance pay only equals a very, very, very small fraction of 12 months of pay, so the compensation of this request is inadequate.
I have contacted to local attorneys. They both said that it is legal of them to request this. One lawyer said that I just simply should not accept the severance and that I should just try to find another job. The second lawyer said to sign the agreement, accept the severance, and still try to find another job because the no-compete clause is just too vague and asking me to give up my career for 12 months is not something that would be supported in a court of law if my previous employer decided to prosecute.
Has anyone ever been in this situation? What did you do or what is your advice to me?
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Are you sure the non-compete clause prevents you from working elsewhere?
Oftentimes, what the non-compete clause in an MT contract means is that the MT cannot solicite work from the clients of the MTSO, not that the MT can't also work elsewhere. In fact, for an IC contract, stating you can only work for that MTSO is a big no-no (since one of the IRS definitions of an IC is that they provide their services to more than one client).
Not due to noncompete clause ..
I'm just talking in terms of other MTSOs will hear that you are going around town undercutting their prices and stealing their clients. They get mighty ticked and share that info with other MTSOs and then if you apply with them, they'll say Oh, THAT person and it will not help your case any. It's not a legal thing such as the noncompete, just kinda like a social outcast, for lack of better explanation! lol
If you are happy where you are, I agree you should stay. You have to remember that most of what you hear on the Internet is exaggeration. I take about half of what I hear, cut that in half, and THAT is how much I believe. LOL It's just too tempting when you are posting anonymously to add some flavor to your life story so I just take what I hear on these boards with a grain of salt unless I personally know the poster.
There is good money in having your own accounts but there are a LOT of headaches that go along with it, too. (For example, I'm dealing with a severely delinquent client right now -- big bad headache.) I enjoy it but not everyone is cut out for the business side of running a service so you know, the grass isn't always greener. Or to take a line from one of my favorite songs, the grass is always greener where the dogs are sh*tting. (Oops, can I do that here?? lol)
Sometimes I'd just as soon go back to working for someone else, even if it meant less money. I'd give up some of the headaches in a heartbeat but I can't give up the flexibility that having my own service affords. Too spoiled now! I have two children so that's the major reason why I enjoy having my own service. I can call the shots as far as what hours I want to work as long as the work is delivered within the TAT. :)
One thing I should add, though, is that I do pay a price for the flexible hours in that I don't get days off very often, and they sure aren't paid when I do (same goes for sick days). On the contrary, I have to pay someone else to cover for me on those days. And for the record, I do my own transcription and have a couple of subs who help out only for overflow or when I get backlogged, maybe once a month or so -- or if I just need a vacation -- so I am still very much a working MT!! I have seven docs I transcribe for so I am busy, busy, busy. I'm looking into probably hiring someone on for the long haul within the next six months because my workload is increasing by the day but I will always still transcribe, too, for as long as this body will hold out.
Anyway, my point of this long post is to say that for me, having my own accounts is not just to make better money, although that is a good perk, but about the freedom to call the shots. Since I make the contract, I make my the rules and if they don't like my way of doing things, they can find another service. Since there aren't too many in my area, they'll usually negotiate something that works for us both. :D
About that 75 miles clause
I've never seen that enforced on at-home employees, so I'm not sure. I HAVE seen references to FMLA in Medquist's literature, which implied to me that FMLA applied to MQ'ers. As many MQ'ers as there are though, maybe there are 50 or more employees in most 75-mile radiuses? Even with the Q though, that doesn't seem possible. The USA is a pretty big place... My thinking is that FMLA applies to at-home employees who are employed by companies with more than 50 employees.
I have heard Proveros has that clause.
nm
This is the confidentiality clause on email I receive
This email message may contain legally privileged and/or confidential information. If you are not the intended recipient(s), or the employee or agent responsible for the delivery of this message to the intended recipient(s), you are hereby notified that any disclosure, copying, distribution, or use of this email message is prohibited. If you have received this message in error, please notify the sender immediately by e-mail and delete this email message from your computer. Thank you.
The way I translate that whole paragraph is:
I am the intended recipient. The rest of the paragraph does not apply.
However, if I were NOT the intended recipient, THEN I am hereby notified regarding disclosure, copying, distribution, blah blah blah blah.
Go prove your case and get what is owed to you.
Good luck.
they have to compete with the
I guess that is whats happening?
Non compete
Normally a noncompete clause pertains to an employee leaving a company and either going to work for one of their clients or taking the account for herself.
It should not keep you from working for a competing transcription company just should keep you from taking one of theirs clients for yourself or to another company.
Check the fine print a little closer
No compete
I do not think I would sign this, but also wondering if any of this affects your right to unemployment. When the hospital outsourced us we got a severence and then they denied unemployment for the time of the severence. We did not have to sign a noncompete though. I think this can vary state to state though as far as unemployment laws. On a funny note though, the hospital assumed we would all jump at the chance to work for the company they contracted with to outsource the work. Not one of the 35 MTs went to work for this heavily Indian-based company with a bad rep of hiring the MTs for the transition, then firing them once things were in place in India. The HR person at the hospital told me they were shocked and never expected to have to pay out the severence or have the unemployment claims they ended up with. Oh well!
Non-compete
If you are in a specialized business, such as medical transcription, you can claim hardship and a court will not hold you to said non-compete.
You have a right to reasonable opportunity to support yourself and a non-compete signed with a transcription service isn't worth a whole lot.
And if you work for someone and go after their clients, then ya just hope Karma doesn't pay you a visit.
Need to know the wording. Non-compete does not mean you ....
cannot work for another company. It usually means you cannot actively persue work from any of their accounts. They don't care about other MTSOs or if you have an accout of your own. This is especially true if it is IC.
You need to read it over again. Non-compete isn't about your time...its about their clients.......
Some places have no-compete clauses with
s
How can you compete with the big-company price-wars? - nm
?
Yes, its simply called a No Compete contract.
in our industry. MTs and management alike are bound by them, so really should be no hard feelings or a big deal. Its a very understandable clause and common in all industries, not just ours. If you don't like the clause, you don't have to sign or work for the company. Its not a biggie, really, and very common.
Non-compete clauses in contracts. Has anyone refused to sign this and still got the job? nm
nm
I agree. Three months and the best move I made. For radiology, I do not think anyone can compete.
nm
I worked for an all US MT company, we lost to offshore. Couldn't compete with their bids, and th
:(
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