I recently took a remote job as I needed it for some stability. Normally, I much rather stay self employed but for now, I need the steady paycheck.

I was able to get a full time salaried job that was remote and exactly what I was looking for.

However, upon my first day (today) I found out I need to sign a non compete. It also mentions an invention disclosure if I ideate it.

This has me a bit concerned as I have a startup (in hibernation for now) that I worry could be at risk if I signed it.

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Posting as :
works at
You are currently posting as works at

Talk to a lawyer. Don’t try to figure this out on your own.

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This.

Lawyer - now's one of the rare times where you really need it. Doing this right can make the difference between live and die for your start up on the future.

You don't have to reveal anything to HR - tell them you need time to review it fully and ask tmif they have a deadline.

Fact is if they've waited for you they'll wait a couple more days. Don't waste that and get to that lawyer soon just to straighten things up.

If pushed then I'd be open with the employer and say that you have an existing company of your own with existing IP and that you need to make sure that your IP is fairly and adequately protected.

Hold your ground on that imo.

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Thank you!

I really do not want to forego this position, as I currently really need it. But I also would not like to see my startup get kicked to the curb because of it. One thing I’m also not sure of is my employer is in a different state than I am, so which states non compete laws would be enforced?

Any insight would be hugely appreciated. Thank you!

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Remote work presents some interesting questions for sure but the end result may still be the same. It depends on the scenario and language used in the contract.

There should be a clause in the contract on governing law and possibly venue (geographic location). If it’s silent on venue then a suit against you would likely be litigated in your local state or federal court; however, the local court would still look to the substantive law of the state named in the contract (at least initially). Whether the court actually enforces the governing law provision is another story: if the chosen law lacks a reasonable relationship to the parties/transaction then the court may disregard the provision and apply the law of a different state. The court determines which state’s law to apply in accordance with its own conflicts of law principles. Said principles vary by state, as does the likelihood of a non-compete being enforced. Even where the law favors enforcing a non-compete, the company must be willing (and able 💸) to pursue enforcement. In reality, many non-competes are just paper tigers.

I suggest looking at the laws re: non-competes and conflicts of laws in your state, the company’s state, and the state named in the governing law provision. This should give you an idea as to the potential outcomes.

Good luck!

likesmart

You're starting a business that competes with your day job directly?

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No, I’ve had it since November of last year. It’s just In a bit of a lul until I’m able to get more Investment :)

It would not likely infringe on any intellectual property created and worked on prior to your employment with the new company. But would prevent you from using anything you learn in the new company or create in the new company to leave their employment and directly compete. But a lawyer is always wise since you're concerned. It's worth the piece of mind.

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You should discuss it with them. You can even mention your concerns and be honest. What they might do, is ask you to list any of your previous work that you would claim as intellectual property. That way they know asked of time what you have and if you go back to it, they can't claim some sort of IP theft.

Be upfront about the start up if you intend to make it a reality.

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If it’s not in direct competition, then you could suggest/negotiate some edits to the non compete. Worthwhile to chat with a lawyer

I’m in the same boat. Self employed and loving it but I’m getting married and need something with more solidity. I know schools that pay peanuts that have non-compete agreements. I’d say that is a relatively common thing. And certainly when it comes to a company protecting its interests with a remote worker. Not saying it’s fair or right, but mildly understandable.

Universities, startups, and many company’s have that invention clause. It’s to prevent people from stealing, or taking something they’ve developed with a company’s time, tools, or information and using it for personal gain elsewhere (directly or indirectly).

NASA & SpaceX are two prime examples of this. Private and Government entities use the brightest minds and (steal) their ideas. Most of those ideas would have never been exercised or brought to full fruition without the power and tools of the employer.

Have a lawyer review it. You’ll feel so much better and won’t have to worry I’m the future if you move forward.

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