Several weeks ago, Senator Robert Young of Maryland is going to work to pass bill 51. If successful, the bill could be passed and help people who are on non-compete agreements.
Basically, the bill states that if you have lost your job and have to collect unemployment benefits, then your non-compete agreement would be invalid if you were on one. Unfortunately, if the bill passes in October, it will work only going forward. It will not be retroactive.
Yes, it’s a very powerful statement that Young is making. He’s saying why should we pay unemployment benefits for people who can work but can’t due to their non-compete agreement.
From the standpoint of the employee, they need this kind of relief. I mean, who wants to collect unemployment. If you have lost your job and you’re unemployed, the last thing anyone wants is to be blocked a potential job. After all, that’s depriving someone of earning a living.
Let’s face it, if you have to look for a job outside your industry, it means that you’re applying for a job that you’re unqualified for. For example, if you’e applying for a job in digital advertising, then you need to have experience in order to apply for the job. If you don’t, what chance do you have of getting this job since there will be resumes going in from people who have that kind of experience. It’s impossible to compete with that.
In my case, I’ve been looking for a job for six years. I’m still employed but I don’t have the skills to work out of my industry. I continue to apply for jobs but there are other applicants who have the skills that I don’t have. Just because I have a job doesn’t mean that I can work in any company I want. In fact, since I’ve been at my company for 14 years, the first thing they say to me at an interview is Why are you leaving? You’ve been at your company for such a long time. Are you not making your quota? Is something wrong? How many times can you say I’m looking for a better opportunity if they’re not going to believe it.
Of course, the company that I work for doesn’t see it that way. Their lawyers will back them up and say that I have trade secrets even though I don’t attend board meetings. Then they’ll say that I have relationships. Of course, they’re not relationships since most business is transacted over the phone and the people that I deal with work with other vendors in the industry as well.
Then the lawyers will make the argument that I know who my clients are. Well, in this day and age, if you work for a company and you have a database like Salesforce, then your competition is constantly calling companies and will probably have records of who the companies are working with.
In the end, a non-compete agreement is based on assumption that an employee may have an impact on the employer’s business if they leave. We don’t know what the impact will be though. Katie Couric leaving NBC to go to CBS is a perfect example.
Of course, one law firm points out that there is a lot at stake and that this bill won’t even work because companies will start denying unemployment benefits to employees so they can’t work for a competitor even though nothing is at stake.
In the end, as my lawyer pointed out, companies have an attitude that they’re doing me a favor by giving me a job because they can fire me at any time for any reason and I can’t work in my industry for 2 years. They can do this because they state that I can’t work for a company that has a competing product. As a result, they don’t have to give me anything, not even a severance package.
Going to court means that people like me have to pay $10,000 in legal fees which we can’t afford. Instead, it is up to the government to do something about this. That’s why bill 51 is in Maryland. If it passes - and I’m sure the special interests groups will try to get the government officials to kill it - then maybe other states will consider doing the same thing.
Ron Hummer
Basically, the bill states that if you have lost your job and have to collect unemployment benefits, then your non-compete agreement would be invalid if you were on one. Unfortunately, if the bill passes in October, it will work only going forward. It will not be retroactive.
Yes, it’s a very powerful statement that Young is making. He’s saying why should we pay unemployment benefits for people who can work but can’t due to their non-compete agreement.
From the standpoint of the employee, they need this kind of relief. I mean, who wants to collect unemployment. If you have lost your job and you’re unemployed, the last thing anyone wants is to be blocked a potential job. After all, that’s depriving someone of earning a living.
Let’s face it, if you have to look for a job outside your industry, it means that you’re applying for a job that you’re unqualified for. For example, if you’e applying for a job in digital advertising, then you need to have experience in order to apply for the job. If you don’t, what chance do you have of getting this job since there will be resumes going in from people who have that kind of experience. It’s impossible to compete with that.
In my case, I’ve been looking for a job for six years. I’m still employed but I don’t have the skills to work out of my industry. I continue to apply for jobs but there are other applicants who have the skills that I don’t have. Just because I have a job doesn’t mean that I can work in any company I want. In fact, since I’ve been at my company for 14 years, the first thing they say to me at an interview is Why are you leaving? You’ve been at your company for such a long time. Are you not making your quota? Is something wrong? How many times can you say I’m looking for a better opportunity if they’re not going to believe it.
Of course, the company that I work for doesn’t see it that way. Their lawyers will back them up and say that I have trade secrets even though I don’t attend board meetings. Then they’ll say that I have relationships. Of course, they’re not relationships since most business is transacted over the phone and the people that I deal with work with other vendors in the industry as well.
Then the lawyers will make the argument that I know who my clients are. Well, in this day and age, if you work for a company and you have a database like Salesforce, then your competition is constantly calling companies and will probably have records of who the companies are working with.
In the end, a non-compete agreement is based on assumption that an employee may have an impact on the employer’s business if they leave. We don’t know what the impact will be though. Katie Couric leaving NBC to go to CBS is a perfect example.
Of course, one law firm points out that there is a lot at stake and that this bill won’t even work because companies will start denying unemployment benefits to employees so they can’t work for a competitor even though nothing is at stake.
In the end, as my lawyer pointed out, companies have an attitude that they’re doing me a favor by giving me a job because they can fire me at any time for any reason and I can’t work in my industry for 2 years. They can do this because they state that I can’t work for a company that has a competing product. As a result, they don’t have to give me anything, not even a severance package.
Going to court means that people like me have to pay $10,000 in legal fees which we can’t afford. Instead, it is up to the government to do something about this. That’s why bill 51 is in Maryland. If it passes - and I’m sure the special interests groups will try to get the government officials to kill it - then maybe other states will consider doing the same thing.
Ron Hummer