; Non Compete Statement
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Non Compete Statement


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									                         CAND I DATE Issu es
     RP                  Non Compete Agreements and Your                     proper consideration. We have even seen
  re s o u r c e         Career:                                             examples of employers asking prospective
    PA R T N E R S                                                           employees to sign a non-compete agreement
                         From time to time we are asked by candidates        as an initial condition of employment
                         to give them a brief summary and opinion of         WITHOUT any type of proper consideration.
                         non-competition agreements, commonly                As a professional in the career industry, I
                         known as “non-competes”, in the State of            would have to question the sanity of any
                         Nevada and with specific emphasis on the            candidate or prospective employee that would
                         gaming industry. While we are not attorneys         trade away their ability to work in a specific
                         and nothing in this article should be               industry as dynamic and growing as the
                         considered legal advice or counsel, it is           gaming industry without some substantial
                         important to know from a business and career        consideration for doing so.
                         longevity perspective some of the do’s and
                         don’ts when it comes to these agreements.

                         1.       The Employer’s Perspective: First, let’s
                         take into consideration the perspective of the
                         employer. After all, they are the driving force
                         behind this type of agreement. Traditionally,
                         non-compete agreements were reserved for
                         employees of very senior level who had access
                         to specific trade secrets or other customer
                         knowledge that if disclosed to a direct
                         competitor through an employee acquisition
                         or direct hire, would cause the current
                         employers business substantial harm or              2.       Should I sign a non-compete
                         impediment. Generally, at this senior level,        agreement? We are consistently asked this
                         employees would be looking at these types of        question by candidates and we ask them to do
                         agreement with a long term perspective. With        this simple “career equation”: If you can name
                         that in mind, employees were willing to sign        at least 3 other companies that you would
                         this type of restrictive agreement with “proper     even remotely consider working for at some
                         consideration”.       “Proper    consideration”     period in your life that would otherwise be
                         generally means some type of monetary or            prohibited by the prospective employer’s
PHONE                    future monetary reward for agreeing not to          non-compete agreement, then take a “pass”
702.248.1028             compete with the employer in the event you,         on the opportunity no matter how good it
                         the employee, left the company. Many times,         seems to be. If you cannot name at least 3
FA X                     proper consideration comes in the form of           companies that you would consider working
702.367.4802             direct cash, stock options or other significant     for at some point and you feel compelled to
                         perks not available to the rank and file            join the employer requesting a non-compete
EMAIL                    employees. The current trend for most               agreement as a condition of hiring, make
                         employers in the gaming industry, who ask           certain you get something in return. Do not
                         employees to sign this type of restrictive          make this decision quickly. Take the time to
                         agreement, is to give them stock options as         find out what they offer others or have offered
www.Care erInsider.com
Page 2

  others as proper consideration for           not compete with the employer for a           harm to the employer. Thus, think
  trading away your ability to move to a       set or defined period of time. For all of     about the process of “fighting the
  different employer. Ask them to provide      those reading this and getting that           company” based on your laypersons
  some examples of what they have given        sinking feeling in their stomach, please      understanding of the law. Please, go
  others at your career level in terms of      go to your personnel file and check to        ahead, and spend 30 minutes
  stock options, cash, or other financial      see if this exists. Trust me; HR will have    consulting with an attorney specializing
  incentives. If they have a problem           a copy for you.                               in employment law. Let him layout the
  supplying you with that information or                                                     potential financial costs for you just to
  are reluctant to discuss this, then you      4.       “I think I can get out of my         get STARTED defending yourself when
  have a real problem. Get something for       non-compete”: Under the heading of            your previous employer sues you.
  yourself that will make it worth knowing     “even more clueless” are those                That’s “when” not “if” they sue you.
  you are now locked into this employer        employees who think they can go and
  for the foreseeable future because, let      fight the company on the non-compete          Here is the basic summary:
  there be no mistake, that is what you        issue and win. While there is actual
  are doing by signing a non-compete           case law that provides employees with         1.        When presented with a
  agreement.                                   some specific examples to escaping            pre-employment            non-compete
                                               non-compete        provisions,      getting   agreement, KNOW YOUR VALUE:
                                               yourself out legally is a whole other         Make certain you are getting something
                                               story. Only the “deepest” of financial        in return for signing this agreement.
                                               pockets are ready for the fight to            Whether it is cash, stock or other
                                               release      themselves        from       a   financial inducements, make certain
                                               non-compete. We always say in our             they are adequate enough to cover all
                                               discussion with candidates: If we had a       your expenses for the time period you
                                               dollar for every candidate that stated “I     are restricted from working for a
                                               know my boss will not hold me to this”        competitor if you left or were fired.
                                               or “they did not hold Charlie back from       Example: A six month non-compete
                                               joining XX company” or “they did not          period is provided in the agreement.
                                               enforce it against Charlie when he went       You should receive, at the very least,
                                               to XX company”, we would be very rich         compensation that would cover all your
                                               men. The cold hard reality is that most       living costs for the six month period,
                                               candidates do not have the actual             preferably more. Being duped into
  3.        “I do not know if I am covered     financial capacity to take on a               signing a non-compete agreement with
  by a non-compete”: This statement            corporation in court. There is virtually      a company without any financial
  goes under the category of hopelessly        no chance that a future or prospective        consideration and being duped or
  clueless in terms of your career. Let’s do   employer, no matter how enamored              fooled into believing that the offer of
  a quick check. First, beyond the             with your skills and potential, is going to   employment or continued employment
  obvious statement of how do you              take the risk with you of getting sued by     is sufficient financial consideration is
  possibly not know for certain; let’s find    your previous employer. If candidates         just plain stupid. I’ve seen plenty of
  out if you have ever received any stock      who bluster this “I’ll fight them”            people do this. We have a nametag for
  options or other corporate dividend          statement actually sat down and did the       them: MORONS. Any company that
  style of payments. If so, chances are        financial math in terms of the resources      seeks to have candidates sign
  that you signed some type of agreement       it would take to successfully defend          non-competes        without     tangible
  or understanding as to the rights of the     themselves in this situation, they would      financial consideration and just as a
  company for so graciously granting you       think twice about being so naïve. And         “formality of being part of their great
  these stock options or other                 do not forget, you, the employee, by          company” is not looking out for your
  inducements. Generally, hidden away          breaking the non-compete, are the one         interest. Run for the door when
  towards the end of these types of “post      who “has wronged the other” in terms          presented with non-compete that gives
  employment” non-compete provisions           of the court. You, as the employee            you      no      immediate     financial
  is a brief paragraph stating that you will   leaving, are the one that is causing          consideration.

PHONE: 702.248.1028 | FAX : 702.367.4802 | W E B : www.CareerInsider.com
Page 3

  2.          If you have a non-compete         and cons of signing the agreement
                                                                                            About The
  and are fired or need to leave: Find a
  job that will help you cover your
                                                with specific note to the financial
                                                consideration given.
  expenses until the non-competitive
  period expires. Make certain your new         For more informationon the subject of
  employer does not in any manner fall          non compete agreements in the
  under the category of “competitive” to        gaming and casino industry, please visit    With the explosion of gaming as a
  your past employer. Do not go down            our candidate library for specific          national industry, Bill founded Resource
  the road of trying to convince                examples.                                   Partners to serve client corporations
  prospective employers that you “can                                                       across     all   jurisdictions.  Bill  is
  get out of the non-compete” or “my            If you have specific concerns or            experienced in all facets of executive
  previous company will not enforce the         questions, please seek professional         search including compensation analysis
  non-compete”. No employer in their            legal advice from a labor law specialist.   and executive development training. Mr.
  right mind and with decent legal                                                          Werksman has built strong relationships
  counsel will hire a candidate who is          Attorney Resources:                         within the local and national gaming
  covered         or   restricted      by   a   Martindale Hubbell Legal Directory:         community based on his respect and
  non-compete provision. Thus, it only          www.martindalehubbell.com                   understanding of the recruitment
  makes you look foolish to try and do                                                      process and its core importance to
  so. Move on with your life. Bide your                                                     corporate development. Bill understands
  time and swallow the bitterness.                                                          that leadership and intellectual capital
  Channel your energy towards being                                                         are the prime source of competitive

In this Issue:
  even more successful in the future.                                                       advantage.
  3.          If you are still foolish enough
  to think you can challenge the                                                            Mr. Werksman resides in Las Vegas with
  non-compete legally, go see a qualified                                                   his wife and their two children.
  employment law firm. When you walk
  in, rather than ask for the attorney
  immediately, ask for their “Retainer
  Agreement”. Whip out your calculator
  and start punching in the numbers.
  When done with that immediate
  sticker shock, add to that the
  emotional costs that will be associated
  with such a legal action. Add to that
  the damage you will do to your
  professional reputation in the industry.
  If it still makes sense after that, stop by
  my office. I’ll have a new name tag for

  As with any significant career decision,
  take your time. Seek the advice of
  trusted associates and family. When it
  comes time to consider signing a
  non-compete agreement, invest wisely
  and select a competent labor or
  employment attorney skilled in these
  matters. Have them layout all the pros

PHONE: 702.248.1028 | FAX : 702.367.4802 | W E B : www.CareerInsider.com

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