Confidentiality agreement, contract worker, when to take a full time job? 1

[officeroamer]

Thursday I was asked to lead a new project that would take about 6 months to complete . I currently have a bit over 3 months left on my contract with the company. I turned it down stating “I currently have 6 small projects that I’m trying to finish and I'm working on 3 other projects”. I also stated that “I will help someone lead the project and will work on it, but I don't want to get to deep into a project and not be able to finish it”.

Today (Monday) I was pulled into the office with the president and the owner. My words were twisted around about why I turned down the lead roll on the project. I explained to them if the project was rushed it would take about 4 months and would be buggie and it should take 6 months to do it right and to do all the needed trouble shooting to avoid issues down the road. The both forgot my contract was going to end in about 3 months.

HR called me into the office twice. The first time was a full time job offer that was low. The second time was to extend my my contract to 7 months. The offer was ok, but the confidentiality agreement had changed to much, and I already have something lined up for when I’m done with this contract. I told them that I would defiantly consider it if I could resign the old confidentiality agreement.

Towards the end of the day the president walked into the conference room where I hang out to talk. He did his best to try to make me feel an inch tall and told me how important I was to the companies future. He brought up the IT manger job opening and we had good discussion about it. We also talked about why I like working as a contract worker and the projects I'm currently involved on out side of work.


There confidentiality agreement is now 37 page that includes the HIPPA stuff. Is that a bit large or has this become normal?
The old confidentiality agreement limited me on working in parts of bio-mechanics, but the new one says I can not work in the field for 10 years after leaving the company. Is this normal?
How long do most IT people stay with a company?

 

[MikeHalloran]

Are they going to PAY you for ten years after leaving the company?
That part of the agreement seems extreme. ... as does the length.
Ask for a copy of their agreement with their sales people, and compare.

As for extending the contract, that becomes a problem, in the USA, after 12 months, when the IRS does not allow you to take part of your pay as untaxed per diem.

This might be a good time to talk with a lawyer and an accountant about your situation, before making any further commitments.

 

[officeroamer]

No they are not going to pay me for10 years after after I leave. It says I can not work in bio-mechanics field for 10 years after I leave the company.

I under stand the tax issues.

I do have a copy of the confidentiality agreement and dropped it off at the lawyers yesterday.

 

[Noway2]

It says I can not work in bio-mechanics field for 10 years after I leave the company.

This line doesn't pass the smell test. I fail to see how a company can dictate to you that you can't work in a particular field, using broad generic terms for a decade after leaving them; it seems way too vague to me. Now, I have seen agreements stating that you won't go work for company X,Y,or Z where they are a direct competitor for a certain period of time, but even then it has been over a decade since I've seen anything like that. Also, while I am not a lawyer, I have heard and read references of legal references to to the concept that a company can't issue a contract that prevents you from earning a living, which it sounds like this is going a long way towards.

At 37 pages, and containing twists like this, I would be hesitant to sign it. I would insist on a more reasonable, non disclosure type agreement, etc, though in truth, if you have something lined up for when this dig is over, your best bet may be to not let the door hit you in the backside on the way out. The situation you describe brought to mind experiences with psychopathic. narcissistic managers who want something (from you). Unfortunately, they have a way of turning on you once they get it.

 

[willir]

officeroamer - Seek legal advice!
I am fairly certain that a company can not stop you from working - you have to feed the kids, pay the mortgage, etc. And since you are doing what you do best, preventing you from being able to do what you have trained your self to do well amounts to preventing you from working for the level of pay you are accustomed to.

As I understand it, the reason why CEO's get the huge pay outs when they leave a company, even if their performance sucked, is so that they "live" without working for a competitor.

Consider yourself in negotiations "mode". Your lawyer may draft a new contract with a counter offer that addresses your concern.

But rest easy - it sounds like they like your work, and they are willing to pay for it. Be confident, but reasonable.

Richard

 

[Thadeus]

Hello officeroamer,
Do you have an update? I am curious if you consulted a lawyer, accepted/passed, etc... Let us have the benfit of your experiences.

~thadeus

PS: If you feel a specific clause is unreasonable, feel free to amend it right on the document, have the company initial it, along with you and maybe you move on... It is easy enough to either include a close competitor's name specifically that you won't work for on a project directly related to what you have done for this employer (same devices, apps, whatever it may be you specifically did for them)... or even easier to just come to agreement on two years instead of ten (with a small number of competitor names maybe to limit it even more)... Maybe point out how much easier the latter edit is over the prior edit given the subjective nature of 'directly related' type language... Easier in terms of everyone honestly getting what they really want out of this relationship.

Regardless, the best they could do is sue down the road for money they already paid you. Therefore the best advice offered was to consult an HR lawyer. They know whether these type of clauses have legs with judges as they are the ones who would see this type of suit in action.