No Compete Agreements

No compete contracts. They are more common place now than ever. To salon owners this an invaluable tool, they protect the time and money invested in new hires.  They stop a an ex employee from soliciting clients and going to work for a competitor near by.  I once worked for a large department store salon chain that lost $200 thousand in combined sales simply because 4 facialist walked on a manager and opened up their own place.....NEXT DOOR!  And yes they took their books with them.

I am fan of non competes, I have signed them and will again. I feel if you are going take a paycheck your dedication should follow.  I once took an entire year off because I was restricted to 26 air miles of any of my five locations. No worries I opened a gym with my brother.

Now, as an employee what should you expect when presented with a no-compete? Here are some basic guidelines:

1. You are allowed to have a third party read it before you sign. This can be a trusted family member or an attorney. You do not have to sign it the day it is given to you.
2. The employer is obligated to be able to explain to the break down of  "air and land" miles.
3. If they have an education clause that states you must remained employed for a certain time once trained. Ask for a break down of how much the training is worth and why.
4. Is it enforced across the board?   If an entire salon is on a Non-Compete and one person is allowed to work beyond the boundaries of that agreement, then every contract in that salon is now null and void.  Here is why,  contracts given uni-formally to a staff must be enforced in the same manner.  A salon cannot selectively enforce for one and not another.  That goes to bias. I spent 8 years with a company chasing down former employees trying to break their agreements, some worked there many years and others a few months. However, the company knew letting a small fish go meant bigger ones could follow. It seemed small and petty but it was correct legal thing to do.
5. What can you expect in return? How much education? How often? Will you be priority booked for a period? If so how long, and how is it tracked?  Remember this is your career and paid good money to get here, protect your future. Be polite, but do not be naive.

Do not fear the agreement. It is standard and most salons use them, they are means to protect business.  But, if a salon does not meet their end of deal ask for a meeting with your manager,and  if you do have a meeting, document who was there and what was said. You have rights, and you are a professional. Act and expect to be treated as such!

The Salon Guy