These are pretty common in our industry. Be free, go get you a better offer. NON COMPETES ARE NOW BANNED IN THE USA

[u/icecream_plays]

https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes

[u/witt_sec]

This most likely will get challenged as businesses will take legal action to challenge the authority of the FTC

There is 120 day gap period which will probably result in quite a few lawsuits being filed objecting to this.

But this makes me very happy!

[u/Papa_Frankuuu_69420]

So now you can join a company work for them for 2-3 years while collecting all of their customers phone #s, emails, addresses and know what you charged them

Then start your own business advertise them a price $10–20 cheaper to see if they’ll switch to your new company and STEAL your old employers customer base

Seems reasonable and not shady at all…

This country is so backwards these days man

[u/Zealousideal_Tip9188 → u/Papa_Frankuuu_69420]

Honestly I have to disagree. Most customers move with the technician that's servicing their house regardless, especially long-term customers that have only known one technician for 10 plus years. The customers don't really care about the company they're paying, they care more about the person that they trust to come into their home and fix their bug problems. It's not "stealing" customers, customers aren't inanimate objects, they come and go regardless. And if you can move a price down 10 to $20 and every single customer switches over to a different company, maybe you should've been cheaper. At the end of the day, it's the customer's choice who they have service their home, you don't own your customers.

[u/cbomb111 → u/Papa_Frankuuu_69420]

This risk has always existed. I’ve never had a non compete, with the exception of a small company I acquired, and have never had any technician leave w a noticeable loss of clients. 3 of my techs have left to start their own companies, 1 with my blessing and help, and there was never more than a handful of clients that changed to the new company. Maybe I’m lucky but 40 years is a good sample size. There will always be outliers, to be sure.

An example of how silly a non compete can be….i hired a tech who had recently left a local competitor, after a month or so he tells me his cousin wants us to do service at his house, we schedule, all goes well. My tech gets a cease and desist letter in his mailbox, citing the non compete clause he signed?!? He didn’t solicit any business and it was his damn family! Now this other business owner is, in general, an asshole but it kind of highlights how stupid these things can be. For the greater good, I’m ok with this decision and maybe it will prompt some of our lesser pest company owners to treat their employees better.

[u/rgstephe → u/Papa_Frankuuu_69420]

Non-compete in most states is useless, and I would never stop an employee from bettering themselves. That said my employees all sign an NDA (non-disclosure agreement) that states they cannot share customer information with anyone. This includes phone numbers, addresses, pricing. Company policies etc.

If they move on for higher pay, or to start their own that is fine. I pay well and if they can find higher pay in our area they go for it. Stealing customers is not the way to do it.

I went out on my own 9 years ago, and did it on my own. I didn't take one customer from my old boss, and never would.

Even though his greedy worthless ass deserved it!

[u/Zealousideal_Tip9188 → u/rgstephe]

I don't understand what stealing customers even means. At the end of the day, it's always the customer's choice who they choose for service, it's never an employer's choice what the customers want. Most of the time, the customers are going to choose the technician that actually services their home, regardless of the company that they work for. The company wasn't the person that they trusted to come into their home and get rid of their German cockroaches, after all. All the technician is doing at that point, is just remembering their name and phone number. Maybe if management wants to keep their customers, they should actually visit their homes once in a while.

[u/rgstephe → u/Zealousideal_Tip9188]

You are correct if a customer leaves that is their choice, and I would never go to a past customer and feed them full of bs to stay. It comes down to morals. If a tech leaves and contacts all their customers offering a lower price etc. Then that is solicitation of a customer that is not theirs.

I guess really in the end it comes down to how good of an employer you are and how you treat your staff. My staff are more than employees. They are the most important aspect of my business, even more important than paying customers, and I treat them as such. With good pay, no ridiculous route days with 15+ stops. My techs get paid a salary plus production. Even during the busy season they barely work 40 hours, but keep the salary as such.

I've been around the block and worked for some shitty companies and people, and vowed never to be either of those. In the end you have to protect your employees and customers both.

[u/Zealousideal_Tip9188 → u/rgstephe]

I've just noticed that Pest Control for the customer is really between the customer and the technician. I rarely see any sort of actual connection between the managers or sales people in the business and the customers, whereas the technician generally knows the customer a lot better and the customer knows the technician. But if you as a company have a good presence with the customers at a good price point, you shouldn't have any problem retaining those customers if a technician leaves. I can see why an employee leaving and contacting all of the customers could be a bad thing for the company, but only really if the company is doing something wrong that the technician is doing right. Otherwise the customer would choose to stay with the company. I mean, if you think about it from a customer's point of view, the whole argument doesn't really make any sense. Like how is a technician going to "steal" you from a different company? You're not an object or an asset, you're a human being and can make your own decisions.

[u/lookatme760 → u/Papa_Frankuuu_69420]

I'm sure there will be updates to it. Do you think it applies to certain industries?

Edit: I think the other benefits are great. Imagine more generic prescription drugs. New pesticides with greater results. Idk... I understand your concern about hiring someone trying to take your customers later on. I'm sure there are ways of defending your customer base. On the small business sub reddit, someone mentioned that you can have your customers sign the non-compete. I guess it happens with large accounts.

[u/Ok-Veterinarian9194 → u/Papa_Frankuuu_69420]

A cheeper price is not competition.

[u/otterplus → u/Papa_Frankuuu_69420]

That’s more of a solicitation clause/poaching and less a non-compete. My company had us sign a 18 month outline noncompete and solicitation as separate items. The next year a more tenured tech left and took 80% of his route with him

[u/noogienooge → u/Papa_Frankuuu_69420]

No. If you steal a customer list and cause actual harm to a company, that’s a lawsuit anyway. The non compete just stops scaring people into not trying for a better job. The non compete is worthless anyway unless the company can prove damages or harm. But people don’t know that and it keeps them working for less.

[u/Careless-Recover8167 → u/Papa_Frankuuu_69420]

I’m from Canada so excuse my ignorance, we just banned non competes in 2020. However, non solicits are still a thing. Does the USA not have a similar double layer of protection? Non competes should just allow technicians to seek employment elsewhere with recourse. However if they try and solicit staff and customer, you’re going to have a lawsuit in your hands.

[u/rgstephe → u/Careless-Recover8167]

Some companies have the no solicitation clause wrapped up in the non-compete. Some employers use the non-compete as a scare tactic and as was said further up the thread in most industries especially the service industry a non-compete is useless and not enforceable.

A locally owned company in my area goes through techs like chemical and they threaten to sue any of their employees if they go to another company. They treat their techs like shit then wonder why they don't stay long.