Sunday, February 10, 2008

Should You Sign A Non-Compete Contract?

I was recently hired by a group that wanted me to ghostwrite short 250 word articles for their client. I originally thought that this would be a good and reliable writing gig. The contract was to be for a one year period, but could go on for about three years.

I went through the process of joining the team and then things quickly changed. They decided that everyone on the team would need to sign new contracts that included a non-compete clause. This clause stated that you could not work for any of their direct or indirect clients for a period of one year after leaving their writing team. I could not work directly or indirectly for any of these clients. That really bothered me. I have been burned in two other careers by signing a non-compete contract. I didn’t start freelance writing to have my efforts controlled and dictated by someone other than myself.

My question is this: If I leave this team and get work from someone else, what kind of a nightmare am I going to have to make sure that I do not work for anyone that the original team sees as a client? They are currently working on gaining more clients everyday. If I am already working for one of their “new” clients, then what happens? Will I be sued?

I sent off an email that detailed my hesitation to sign such a contract. I received a very professional response in return, that explained why they are taking this stance. While I appreciate the reasoning that they have for such a decision and their professionalism, I cannot in good conscience sign a contract that limits my future work.

Some of their writers were taking their topics and directly approaching the client with the work before the group would submit it. That is not ethical and I would never do that. It is also highly unprofessional. However, while I would never directly go after their current clients, I cannot guarantee that any of their future clients will not be ones that I would choose to work with on my own either now or in the future. What if I contracted work with the client on my own in a different forum before they were a client for this group? That is an entirely different situation that they refuse to see.

A non-compete clause or contract only serves to protect the interests of the employer or first party. They are limiting their future competition in the market. The person who signs such a contract is giving up their freedom to work.

Doesn’t freelance imply the right to work where I choose? Doesn’t freelance imply freedom?

6 comments:

Dana Prince said...

Freelance certainly does imply freedom and I'm glad you caught that. So many writers that are newer to the industry just sign their rights away for the ability to earn money from their writing. I'm going to feature this post on my writing blog as I want my blog audience to read this informational post.

Anonyme said...

I am so glad you wrote this. I think I am in the same situation with a client. I had no idea this is what a non compete means. I don't think I will be limiting myself or my business in this way!

Maria said...

I faced this same dilemma with the same company. Like you, I chose not to sign the nondisclosure and to maintain my independence and right to work for whomever I chose.

I am very happy with my choice, as some of the articles that I have since written directly for the one of the websites earned me far more than the measly $11 the company paid.

Brenda Emmett said...

Thank you Dana! I feel that we need to read those clauses and contracts very carefully. Too many people just sign before they read. Or they don't understand what they are reading. It is better to ask rather than just sign. There are plenty of writing opportunities without these clauses available. :)

Brenda Emmett said...

Nichole,

I am so glad that I could help! Good luck in your business and thanks for stopping by! :)

Brenda Emmett said...

Maria,

When I first looked at this company, I saw a steady and easy writing gig. When they requested everyone to sign a non-compete clause, it really made me think. I am so glad that I did. I realized that what they were offering really limited me in other ways as well. I am so glad I made the choice for freedom! :)

Thanks for stopping by!