I run a small web design shop (just me and one contractor). A new client wants me to sign a non-compete before we start a 6-month project. The agreement says I can't work with any business in their industry for 2 years after the project ends, across the whole state. That seems insane for a $15k project. Has anyone dealt with this? Do I just walk away or try to negotiate?
Contracts
A client wants me to sign a non-compete agreement
Two years statewide for 15k? Tell them to kick rocks. That's not a non-compete, that's a hostage negotiation.
I'd counter with something reasonable: 6 months, only for direct competitors they introduce you to, and only within their specific city. If they balk, they're not a serious client.
lol @ 'statewide'. Are you in Texas? That could be half the country.
Not Texas, but a big state. And yeah, the definition of 'their industry' is super broad too. It basically says 'any business that sells things'.
I had a client pull this once. I crossed out the whole non-compete section, wrote 'not applicable' and initialed it. They signed it anyway. Worth a shot if you don't mind a little confrontation.
Be careful though. If you sign and later they claim you violated it, you could be in for a legal headache even if the terms are unenforceable. Sometimes the threat is enough.
RustyNail makes a good point. But 99% of the time, a client that sends a non-compete that broad is just using a template they found online. They're not goig to sue a small web designer. The cost of litigation alone would dwarf their 15k contract.
Dude I'm not even a lawyer and I know that's garbage. You should ask them to send you the version they *actually* intend to enforce. Watch them squirm.
Alternatively, just sign it as 'Mickey Mouse' andd see if they notice.
That's terrble advice. Don't do that.
I actually did something similar once. Not Mickey Mouse, but I signed 'under protest' next to my signature. It didn't hold up, but it made me feell better.
If you really want the work, get a lawyer to review it. Even a one-hour consult is better than guessing. Otherwise, walk. There are clients out there who don't treat you like an employee.
I'm meeting with them tomorrow. I'll propose a 3-month limited non-compete and see what happens. If they push back, I'm out. Thanks for the reality check.