

Ask PG: non-competes for applicants? - antipoaching

Does it torpedo our YC application if two of the founders work together at a company now? And do we have to leave at the exact same time to avoid triggering a non-compete?<p>Our contracts have what I assume is a typical clause against poaching of existing employees for a certain amount of time after leaving, but I've also got a job offer for a much higher salary that would help save up for YC if we get in.
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dstein
You should read the contract you signed thoroughly instead of assuming
anything. You could also be upfront with your employer, bring the contract in,
and have it modified before making any decisions.

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btilly
Read the contract and _talk to a lawyer_. Sometimes there are things included
that the law won't support. Sometimes there are terms that look innocuous
which, when taken in context of state law, aren't.

Yeah, it is a mess. That's why they have lawyers.

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antipoaching
Thank you, that's a great idea to talk to a lawyer. Seems really obvious in
hindsight but it's not something I'm accustomed to or have ever had to do
before.

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rprasad
The non-compete is legal in many, but not all states (depending on its scope).
It is legal in California, but cannot extend more than a couple of years
beyond employment.

The bigger concern is the intellectual property clause of your contract; if
your startup would be competing directly with your current company's products
(in the market or in development), they would have a very strong claim to it.

Also, the poaching clause is legal in most states. It doesn't mean you can't
recruit existing employees, it simply means you can't do so in a way that
interferes with the target employee's contract with his current employer
(i.e., by badmouthing the employer/its practices, etc).

