Words on the Page

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Writers and the Non-Compete Clause

What’s on the stereo: Jeannie’s in a Bottle by James LeVier


One of the great things about class reunions is how much you learn about the talents that were right under your nose all that time. Take the song listed above — it’s by one of my classmates, and he was kind enough to share his CD with me when I mentioned how much I enjoyed the clips he’d posted on Facebook. We listened to it coming back from Pittsburgh — great stuff. Give it a listen when you get a chance (link is above).

Another month, another topic. This month, if you haven’t noticed, is going to focus on client issues. In fact, since there are so many nuances to dealing with clients, we may have to spread this topic out over a few months. Today’s post was inspired by good chum John Soares, who shared his Nightmare Freelance Writing Client on his blog this week. Give him some comment love, please.

One thing John had to deal with was a client who was insisting he sign a contract with a non-compete clause in it. True, they were limiting their power over him for 12 months (they didn’t want him doing similar work for that period of time), but they really had no business asking. John refused to sign, got his check, and stopped working for them.

That begs the question: what do you do when facing a non-compete situation?

It’s true that not all non-competes are so black-and-white. Often, companies are willing to pay extra for your undivided attention. But sometimes the lines are pretty blurry, or the client is pretty controlling. Let’s look at some areas of non-compete clauses and talk about what works/doesn’t work:

The absolute non-compete. I’ve seen that on a number of occasions. Companies and clients aren’t willing to let their writer work for the competition. Ever. Since these same companies are often unwilling to give projects to the writer endlessly, there’s no reason to agree to it. Have it removed from the contract or don’t work for these people.

The limited non-compete. I get that sometimes the client wants you to give them your best stuff. And  your working for that client as well as the competitor could be viewed as a conflict of interest (to whom do you give that fantastic line or slogan?). If the company is asking you to refrain from working with competitors while you’re working with them, that may be okay. You’re guaranteeing them that you’ll bring your best to them exclusively. They’re saying once you give them your best, you’re free to give your best to the next client.

The loosely defined non-compete. John brought this up in his thread comments, and it’s a good point to stress. The non-compete language may be too broad, which can be damaging. Suppose you’re a health writer. Your client sells health care claims software. The non-compete section states something like “Writer cannot work for companies doing business in the health care space.” That could mean you’re stuck not able to work for the magazines, for companies handling just workers compensation, for consumer-facing health care companies….you get the picture. Make sure they state exactly who is the competition. And don’t sign it if it’s still up for debate.

The non-compete that limits your earnings. In some states, it’s against the law to impose non-compete terms on a worker if those terms adversely affect the worker’s ability to earn a living. For instance, I remember a hair stylist who interviewed with a big salon in Pittsburgh. They required their stylists to sign an agreement that barred them from working in the stylist capacity for 18 months after leaving the salon. That was years ago, but the absurdity of it stuck with me. If you’re a trained stylist and this is your sole source of income, who are they to limit you? Maybe there’s a loophole somewhere that allows that much ridiculousness, but if it were a writing contract, I’d laugh them right out of my email.

Have you come across the non-compete clause?
How do you respond? 
When do you think it’s acceptable? 

13 responses to “Writers and the Non-Compete Clause”

  1. Cathy Miller Avatar

    I came across the non-compete twice – once in my corporate career and once as a freelancer.

    The corporate one was by a large insurance carrier and squelched by the courts in California. 🙂

    The only time I encountered a non-compete in my freelancing career was when I first started. A brokerage firm wanted me to sign one. I declined. I understand where they're coming from, but there is a difference between non-disclosure and non-compete.

    I can't come up with a situation where I would agree to sign a non-compete. I'll sign your non-disclosure (I have standard non-disclosure in every Statement of Work), but I will not let someone else dictate who I work for or for how long.

  2. Laura Spencer Avatar
    Laura Spencer

    Non-compete clauses are more common in the corporate culture, but as Cathy pointed out they don't always hold up in court. In the corporate world, I know I signed several non-disclosure agreements, but not a non-compete.

    As a newbie freelancer, I was asked to sign a non-compete for a site I really wanted to write for–but the terms were so broad I would never have been able to write for anyone else. I declined and lost the gig. At the time I was devastated, but it was actually a good thing.

    I really think the non-compete is more suited to employees (like sales people and account managers) who could potentially take a company's clients with them when they left.

  3. Lori Avatar

    Cathy, I tend to agree. I'm happy to keep my trap shut about who it is I'm working with, but to impede my ability to earn by forbidding me to work for others? Isn't that like saying "You're my employee and I won't let you"? If so, then they owe me employee benefits.

    I agree, Laura. Non-competes make sense in a corproate setting, but not in the freelance world. It would be akin to asking a plumber to not fix anyone else's toilet for the next 12 months….

  4. Paula Avatar

    I've never been asked to sign a non-compete agreement, but when I started writing for one of two top industry trades it was implied that the don't use freelancers who write for the competition, and vice versa.

    It wasn't a deal breaker, since I didn't really care much for the quality of their competition.

  5. Lori Avatar

    Paula, that bugs me. I've worked for a magazine before that expected freelancers to be exclusive. The smart freelancers arranged deals that paid them extra and guaranteed them work.

  6. Paula Avatar

    Since rumor was the competing rag was circling the drain, so I thought: why would I want to write for it, anyway?

  7. Irreverent Freelancer Avatar

    I flat-out refuse to sign non-competes unless the wording is such that I can't work on the EXACT same thing at the same time. I'm talking educational writing here. For regular writing projects, I would never sign one … PERIOD.

    I've actually had parts of a contract struck or reworded because I refused to sign it as is. I read every word of my contracts and I urge all other freelancers to do the same.

  8. Gabriella F. Avatar
    Gabriella F.

    I'll be the contrarian here. I'm currently under a noncompete (and y'all may remember I'm a lawyer).

    I signed it because I thought the pros outweighed the cons. I have a regular monthly gig that pays me nearly $2,000, and about once a quarter a little more than that. So it's a substantial benefit to me.

    Also, I really trust this publisher, so I didn't think he was going to use the noncompete to unreasonably restrict me. And for four years, he hasn't.

    The clause prohibits me from writing for direct competitors, and we've defined that fairly narrowly. There have been a few times that I've said, "Hey, you consider this guy to be a competitor?" and we discussed it openly. I can think of only one publication that I've not approached because of the noncompete clause.

    When we renegotiated our contract after several years, I tried to negotiate the noncompete out, but it was important enough to the publisher to pay me a little more monthly to keep me exclusive. I thought that was a fair trade.

    So the bottom line for me is that, first, we have a good working relationship and can talk through issues raised by the noncompete.

    Second, the pay is enough that I'm willing to take a pass on other work.

    And third, I'm not sure I could get that other work if I tried, and even if I tried, I'm not sure it pays enough that I'd even take it.

    So I'm not sure I'm giving up too much.

  9. Lori Avatar

    Kathy, you've actually told me about some of those cases where the language wasn't what you've wanted. Good for you. I'll add that if you don't understand something, get legal counsel. When I first started freelancing, I lost out on $1,500 because of ONE word in a contract. That taught me to read every single word after that.

    Gabriella, that sounds fair. It sounds like they've exchanged long-term work (and decent pay) for the restriction. Honestly? I think it can work sometimes. I just think too often some of these clients place tight parameters on freelancers as though we're employees.

    I know a guy who writes exclusively for one magazine in a certain business space. He told me that he can't write for three other named magazines, but as a result, he locked that magazine in to a $20K annual contract. THAT is a non-compete I'd sign!

  10. Paula Avatar

    Now we're all curious, Lori. What was that one word?

  11. Lori Avatar

    The word was "minimum." It read" XXXX Magazine agrees to purchase a minimum 500 words." Guess what they did to my 2,000-word article? Yep. Pared the price down to 500 words and printed it verbatim.

    It's a well-known magazine, too. And when I complained, they ignored me completely. Didn't even give me the byline.

  12. Lori Avatar

    And it was 1989, before email. I was ignored twice via snail mail and once by phone.

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