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Tell HN: Beware confidentiality agreements that act as lifetime non competes

416 points throwarayes | 1 comments | 21 Jun 25 16:02 UTC | HN request time: 0.233s | source

Just a note of warning from personal experience.

Companies don’t really need non-competes anymore. Some companies take an extremely broad interpretation of IP confidentiality, where they consider doing any work in the industry during your lifetime an inevitable confidentiality violation. They argue it would be impossible for you to work elsewhere in this industry during your entire career without violating confidentiality with the technical and business instincts you bring to that domain. It doesn’t require conscious violation on your part (they argue).

So beware and read your employment agreement carefully.

More here https://www.promarket.org/2024/02/08/confidentiality-agreeme...

And this is the insane legal doctrine behind this

https://en.m.wikipedia.org/wiki/Inevitable_disclosure

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tianqi ◴[21 Jun 25 19:56 UTC] No.44340313[source]▶
I think the Chinese law is effective in this regard: in order to maintain any non-competition agreement, the company must continue to pay you a monthly compensation amount equal to 30% of your total monthly income when you were at the company. Whenever the payment stops, the non-competition agreement is automatically void.
replies(11): >>44340472 #>>44340562 #>>44340579 #>>44340850 #>>44341170 #>>44341188 #>>44341352 #>>44341558 #>>44343224 #>>44346921 #>>44349939 #
schmichael ◴[21 Jun 25 22:56 UTC] No.44341352[source]▶
Oregon at least makes it 50% IIRC. Anything less than 100% seems useless though. Usually when taking a new job in the same industry you expect a pay bump, so even a 100% rate is likely leaving money on the table.
replies(3): >>44341514 #>>44341601 #>>44356936 #
Sharlin ◴[21 Jun 25 23:51 UTC] No.44341601[source]▶
Well, yes, but you don't have to work.
replies(3): >>44342651 #>>44342668 #>>44342755 #
hippari2 ◴[22 Jun 25 02:08 UTC] No.44342668[source]▶
More like you are not allowed to work. Loss of work experience, loss network, not even accounting for inflation.
replies(2): >>44343054 #>>44343410 #
1. sagarm ◴[22 Jun 25 03:54 UTC] No.44343410[source]▶
And loss of negotiating power -- the company knows your BATNA is garden leave, and probably not a better offer.