Non-compete clauses: friend or foe for small business owners? Heard a loud debate at a diner in Billings.

I was eating breakfast near the truck stop in Billings last Tuesday and overheard two owners arguing about non-competes. One said they saved his business when a former employee tried to steal a client list. The other called them a trap because he got sued by a bigger company he used to work for, even though he didn't take anything. I've seen both sides on the road, and my gut says they protect the big guys more often than the little ones. But I'm curious, have any of you actually enforced one successfully, or had one used against you? What made the difference?

2 comments

2 Comments

ray_burns3d ago

Tell me @angelamurphy, ever seen a non-compete actually settle a fight without lawyers draining both sides?

angelamurphy3d ago

Is that the whole story though? I've seen more small shops get buried by non-compete fights than I've seen them win one, and usually it's the lawyers who walk away happy. The guy in Billings who got sued probably signed something that looked standard when he was hired, and now he's spending money he doesn't have just to prove he didn't steal anything. Even if you win, you lose time and cash, and that's a win the big players can afford a lot easier than a mom and pop. I'd rather hire someone who is loyal because they're treated right, not because a piece of paper scares them.