Posted by Matt_VA on 5/18/11 10:19am
Msg #383524

Exclusive Agreements

I have seen alot of signing services with a clause on their agreement that states that I cannot work for any of their clients for a set period of time, mostly 1 year. I see this as a liability that could "lock" me out out of a national title company, while they send me possibly 1 assignment a month. I have been turning it down. I understand them not wanting us to steal their clients, but I think it's too far reaching. Any comments appreciated.

Reply by Linda_H/FL on 5/18/11 10:25am
Msg #383525

I line through those "Non-Compete" clauses and initial

They'd have to be willing to continuously provide me with a constantly updated list of their clients in order for me to comply. And, like you, I don't want to "lock" myself out of working for other companies.

Reply by Susan Fischer on 5/18/11 7:22pm
Msg #383619

Absolutely agree with Linda H, only I 'X' out what I don't

agree to, then initial.

I'm an ~Independent~ Contractor, not a sales exec/rep in some 'designated' territory.

Reply by HisHughness on 5/18/11 10:33am
Msg #383527

This is not intended as legal advice, or as an indication of what the law might be in your jurisdiction. It is just an overview.

Generally, the law does not like to deprive anyone of the ability to earn a living, thus it does not favor do-not-compete restrictions in employment contracts. The advisability of that is evident if you go back a century or so, when both geographic and occupational mobility was far more limited than it is today. You were born in a village, you died in that village. You learned a craft, you practiced that craft till you died. Restrictions on the type of work you could do, and where you could do it, had grave consequences. Much of that attitude persists today.

Consequently, employment contracts that overreach with respect to either geographic limitations or occupational limitations usually will not be upheld. Chronologically, the dividing line -- be really careful here, because this may well not be true in your jurisdiction -- is generally around six months. That time line may change based upon the employment prospects in an area and the nature of the employment.

For myself, I would feel comfortable in signing an employment contract with a one-year do-not-compete clause, because I would feel quite assured that it would not be upheld if litigation resulted.

Reply by Stamper_WI on 5/18/11 12:40pm
Msg #383539

I find that their clieents have already been clients of mine, either directly or through another signing service. Some believe they have an exclusive contract with their clients and those who actually do tend to have all their eggs in one basket. When the contract expires, so do they leaving unpaid notary's in their wake.

Reply by Susan Fischer on 5/18/11 9:23pm
Msg #383631

Agree with Hugh re if litigation resulted. I just really

enjoy "X"ing out parts of the contract I don't agree to. Makes it feel, to me, more at arm's length.

And, some part of me also likes the fact that to the other party, it's a pretty good indication that I read contracts.

Reply by BrotherOwner on 5/18/11 1:07pm
Msg #383545

Re: Devils advocate here

Are we not "independant contractors" here as NSAs? I would not agree to most, if any, of the "contracts/agreements" sent/requested by signing "services". Turn the info around. Would they sign the same agreement and give you the same rights/restictions/information as they are asking of you? Are they providing you with "steady employment"? If so, I suggest you look at what the definition of "employee" is under your state and federal employment laws. Direction and control is part of that definition of employee. I would suggest that most, if not all, of these "agreements" vastly overstep their rights to restrict you or require info from you. As a for instance, what do they do with your drivers license? Run a DL check, credit check, sell it on the open market, use it for age descrimination, drop it in the trash, use it to make a false ID for their cousin, share it with some one for junk mail purposes? And you're providing your ssn to boot?
Food for thought.

Above is my opinion only, and should not be construed to be legal advice, guidance, or much of anything else. Let's be safe out there!

Reply by BrotherOwner on 5/18/11 1:14pm
Msg #383547

Re: Devils advocate here

P.S. Have you noticed that most of these come AFTER you've agreed to accept the assignment over the phone, with terms and conditions agreed to by both parties, but NO mention of a contract agreement necessary during call? During the "go-go" days, I might read it, but now I'd just ignore such a request or leave it on the cutting room floor.

Reply by A S Johnson on 5/18/11 1:23pm
Msg #383549

Do you find it is the lowballer and many times the newer services.
I do not sign non-complete contracts, I did one with a mulit-level party plan selling company (Sarah Converntry Jewelry) in the 70's while living in Ark. I took my group to another company, Sarah Converntry sued me for $50,000. Need I say I did not go to New Jersery to answer appear and a defalut judgement was issued that effected my credit for years. So NO way.
Most of the cos I work for are title/escrow and a few of the older ss who are sure of their notaries they don't see the need for this "micky mouse stuff".

Reply by JanetK_CA on 5/18/11 3:00pm
Msg #383566

My guess is that most of them know that it's probably not going to hold up if contested in court, but they figure it's worth asking, in case someone is foolish enough to go along with it.

As I see it, there is no possible way for us to administer that type of request. I've worked for several hundred different companies over the years. Their clients are changing constantly and it would take all my time trying to figure out which clients are whose. Also, like Linda said, I've probably already worked for lots of those companies and some of them may end up calling me directly from other advertising I've worked hard on.

I assume the intent is for us to not use contact information provided to us in the process of completing an assignment for marketing purposes. I think that is reasonable to expect, and I never have, nor will I ever do, that. What I *have* done, is to offer alternate wording that reflects that expectation, and substitute it as a recommended alternative. I've had that work successfully with some good companies. If they aren't willing to accept that change, then I'm probably not interested in working for them anyway.

So if I use marketing techniques that involve a broad sweep, or pull research and contact info from different, independent sources, I can't help it if someone's client gets caught up in that big net. I probably wouldn't even realize it - and I'm certainly not going to take the time to look it up to see if each company or person I reach might be someone I worked with via another one of my clients.

Reply by Susan Fischer on 5/18/11 10:09pm
Msg #383633

Geez. Some of these contracts (at least some while back,)

were ~pages~ long - 9-10 pages...blah blah bhaldiblah...on they went in basically boilerplate language. New, raw SSs, trying to cover all the bases, get a lawyer, and don't question the contract terms churned out by said lawyer, and feel "protected."

HisHughness outlined perfectly the ease with which such a Complaint would be dismissed.

And, another TX poster generously shared a valuable lesson that should be applied generally whenever one is sued: Always Answer, Always Appear.

Great thread!