>Mike,
>
>>>The other type of agreement is a non-compete, which says that after you leave the company you will not go into competition with them. You have hit the nail on the head. For a non-compete to be legally enforceable it has to be specific in three ways: industry, geographic area, and time. So it can't say you will not join or start a similar company anywhere in the country for the rest of my life. In general -- and there are state to state differences -- if it's in the same industry and the same area for one year, that is considered reasonable and enforceable. Note the word "enforceable." Just because you sign an agreement doesn't guarantee it can be enforced.
>
>One of the best responses I've seen online in some time. Thanks!

Don't make me blush, I've forgotten how ;-)

What I know about this, and I am not claiming it is more than it is, was learned on a job I had in the 80s. I worked for a Chicago-based software company whose products were sold to grocery store chains. (That was how I got to New Zealand; Foodtown was one of our clients). Very sophisticated stuff which saved the chains literally millions of dollars a year, and for which we were paid appropriately. A big chunk of revenue came from our developer/consultants who worked on site with clients helping them customize the base package and develop interfaces with their existing systems. Anyway, everyone in that group, which I started in and wound up managing, was required to sign a non-compete. They were in fact a pertinent issue because in those situations there is often a temptation on both sides for the consultant to go to work for the client. (The guy who ran my company put it memorably: "If they don't try to hire you you haven't done much of a job.")

So one of our consultants, who I'll call Butch since that was his name, informed me one day that he was giving his notice to go to work directly for the Von's grocery chain in southern California, where he had been working and billing. He said he was tired of being a road warrior, liked the company and the people he had been working with for several months, and wanted to make the change. Which I understood completely. Not surprisingly, though, the owner did not view it so sanguinely and told me to stop it from happening and take him to court if that was what it took. (I mention only in passing that he probably couldn't have picked Butch out of a lineup; he knew his name only from seeing it on invoices and the company phone list). He gave me the name and number of our attorney for labor matters and I called her up.

After she read the contract she called me back. "I hate to be the bringer of bad tidings but we can't enforce this." It was the never / not ever / no where / no way type of non-compete. She said we're in Chicago and Von's is in L.A. -- strike one. There is no time stipulation -- strike two. And California is notoriously reluctant to enforce non-competes -- strike three. I took this to Charlie and he grumbled but said, "Well, if that's what she says, so be it." Before I had left his office he was already on to the next thing. (One of his great strengths was that he didn't waste time on minor losing battles). It was a pleasure to call Butch up and let him know he was off the hook; go forth and prosper.