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As a CFI would you sign this??

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Old 07-31-2010, 11:27 AM
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Sign it then forget about it
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Old 07-31-2010, 12:01 PM
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Originally Posted by nocnik View Post
i am looking for some advise and opinions on this.

My current employer where I CFi is asking for all of us to sign this contractor agreement. i understand the need for most of it but what gets me is the employment portion. Would any of you sign this????


(b) Non-Competition. At no time during CFI’s engagement or within the period of one year following the termination thereof, whether such termination is voluntary or involuntary or with or without cause, will CFI, except as otherwise consented to or approved by the Company in writing, directly or indirectly own, manage, control or participate in the ownership, management or control of, or be employed or engaged by or otherwise affiliated or associated as a consultant, independent contractor or otherwise with, any other corporation, partnership, proprietorship, firm, association or other business entity or otherwise engage in any business that is engaged in any manner in, or otherwise competes with, the business of the Company or any of the Company’s subsidiaries or other affiliates in or within the State of Ohio.
No - there's really no need to sign that if you're a contractor. Non-compete clause may be worked out... I wouldn't sign anything with that wording (one year) that didn't explicitly guarantee you an out in the form of compensation, etc. You're not an employee of that company - as a contractor you retain a certain amount of autonomy. I don't see what the benefit is for you in signing it.

Are they offering some sort of great pay package? Also IMHO you should consider countering and editing the contract as you see fit.

Just look at the implications of the contract should the company not have any business for a couple months and/or contract too many CFIs at the same time.

What exactly is the reasoning for them behind the 1 year policy?
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Old 07-31-2010, 02:30 PM
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Originally Posted by rickair7777 View Post
He is already employed by the company asking him to sign the agreement (for two years). If he refuses and gets fired for that reason I think he would prevail. Different scenario than a new-hire.

But it looks like Ohio is special (see above post), and has precedent allowing this sort of thing. That's why the company has the cajones to even propose such a thing. Most other states would be different though.
Ohio isn't special at all in the "continued employment supports the new promise" piece. I'd take an educated guess that most states follow the "continued employment" rule exactly as quoted where employment is at-will.

Of course that still begs the questions (a) whether Ohio permits this kind of restriction for someone in a CFI position and (b) if it does, would it consider this restriction reasonable as to both time and geographic area.

Only an attorney familiar with Ohio employment law and the nature of the school's operation can give an opinion on that with any degree of reliability.
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Old 07-31-2010, 03:17 PM
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Originally Posted by nocnik View Post
i am looking for some advise and opinions on this.

My current employer where I CFi is asking for all of us to sign this contractor agreement. i understand the need for most of it but what gets me is the employment portion. Would any of you sign this????


(b) Non-Competition. At no time during CFI’s engagement or within the period of one year following the termination thereof, whether such termination is voluntary or involuntary or with or without cause, will CFI, except as otherwise consented to or approved by the Company in writing, directly or indirectly own, manage, control or participate in the ownership, management or control of, or be employed or engaged by or otherwise affiliated or associated as a consultant, independent contractor or otherwise with, any other corporation, partnership, proprietorship, firm, association or other business entity or otherwise engage in any business that is engaged in any manner in, or otherwise competes with, the business of the Company or any of the Company’s subsidiaries or other affiliates in or within the State of Ohio.

Looks like somone got a job with American Flyers.
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Old 07-31-2010, 03:20 PM
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Originally Posted by NoyGonnaDoIt View Post
Ohio isn't special at all in the "continued employment supports the new promise" piece. I'd take an educated guess that most states follow the "continued employment" rule exactly as quoted where employment is at-will.
I seriously doubt it. Could you force an employee to sign some minor, harmless agreement, such as monitoring company email and other info systems? Probably.

But a major game-changer like a retroactive post-employment non-compete? Pretty far over the top.
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Old 07-31-2010, 03:33 PM
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Originally Posted by rickair7777 View Post
I

But a major game-changer like a retroactive post-employment non-compete? Pretty far over the top.
Right...The binding non-compete should terminate when the employment contract terminates. There's no reason for a post employment contract - it's not like you're working on top-secret work or anything.
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Old 07-31-2010, 08:16 PM
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Originally Posted by ryan1234 View Post
There's no reason for a post employment contract - it's not like you're working on top-secret work or anything.
You're right. But that's a "reasonableness of restriction" issue, not a "continued employment supports new promise" issue.

On the latter, as the Ohio Court recognized in reaching its decision
=========================
Jurisdictions throughout the country are split on the issue presented by the certified question. See, generally, Annotation, Sufficiency of Consideration for Employee's Covenant Not to Compete, Entered into after Inception of Employment (1973), 51 A.L.R.3d 825. As summarized by the Supreme Court of Minnesota, "cases which have held that continued employment is not a sufficient consideration stress the fact that an employee frequently has no bargaining power once he is employed and can easily be coerced. By signing a noncompetition agreement, the employee gets no more from his employer than he already has, and in such cases there is a danger that an employer does not need protection for his investment in the employee but instead seeks to impose barriers to prevent an employee from securing a better job elsewhere. Decisions in which continued employment has been deemed a sufficient consideration for a noncompetition agreement have focused on a variety of factors, including the possibility that the employee would otherwise have been discharged, the employee was actually employed for a substantial time after executing the contract, or the employee received additional compensation or training or was given confidential information after he signed the agreement." (Citations omitted.) Davies & Davies Agency, Inc. v. Davies (Minn. 1980) 298 N.W.2d 127, 130.
=========================

and, btw, nocnik, all is not lost. The Ohio Supreme Court did not find in favor of the employer. It sent the case back down to the lower court to determine whether the restrictions were reasonable.
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Old 07-31-2010, 08:54 PM
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Originally Posted by mshunter View Post
Looks like somone got a job with American Flyers.
I was thinking more about the dude that has the "school" down the ramp from a university department that rhymes with Sent Kate or maybe the lady just down 76 across from the blimp hangar that seems to think she's some gift to aviation and her husband who agrees with her.

Either way, not a chance.

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Old 08-01-2010, 08:27 AM
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Sign it "Elmer Fudd" ...

Seriously, anyone who would put this in an agreement is just enough of a moron to chase you down. It only costs about $60 bucks to file a lawsuit and you end up paying a bunch to get it tossed.

Make 'em take it out. If they won't, have them sign one that guarantees you X number of students...and pick a nice fat number...and says any decline in students that costs you money, they will pay the difference.

Then stand back as they choke.
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Old 08-01-2010, 06:10 PM
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Originally Posted by ATCsaidDoWhat View Post
Sign it "Elmer Fudd" ...

Seriously, anyone who would put this in an agreement is just enough of a moron to chase you down. It only costs about $60 bucks to file a lawsuit and you end up paying a bunch to get it tossed.

Make 'em take it out. If they won't, have them sign one that guarantees you X number of students...and pick a nice fat number...and says any decline in students that costs you money, they will pay the difference.

Then stand back as they choke.
Better yet, tell them you want it in the same contract.

I like the way you think, ATC!

-mini
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