DZ with contracts??

[justme12001 0]

There is a DZO at a newish dropzone, that is apparently asking(requiring) his staff to sign a waiver saying that they will not work for another DZ.

I am wondering if this is common practice. I have worked at a few DZ's and have never heard of this, so I am just wondering.

And just to clarify, it is not my home dropzone!

[ridebmxbikes 0]

like ever?

sounds like he has beef with another near by dz?

[pchapman 279]

I sure don't know US labor law, but it sounds hard to support their action if they employ people as some sort of independent contractors. As a full time salaried employees, maybe. Wonder what the guvmint would say...

[Dokeman 0]

seen it before. Not very common though. Understandable though. Usually they just dont want you starting a dz nextdoor.

[ianyapxw 0]

What exactly does the waiver say? They cannot work for 2 DZs at the same time? They cannot work at another DZ after leaving for x time or what?

[Boogers 0]

I've seen a number of DZO's put non-compete clauses in the contracts for the full time employees. And it even applies for one year after their termination for within 100 miles of the DZ. I've seen a guy get sued by a DZO because he quit and went to work for a competitor 50 miles away. Other guys quit, and then spent a year driving a long way to get to another DZ outside the exclusion zone. This shit happens...

[Scrumpot 1]

pchapman

I sure don't know US labor law, but it sounds hard to support their action if they employ people as some sort of independent contractors. As a full time salaried employees, maybe. Wonder what the guvmint would say...

It's actually easier if they "employ" you as an independent contractor. Simple enough for the "employer" to simply choose not to use you at any given time - if they feel you've violated a "non-compete" clause (or otherwise). Notice I am not saying whether or not it is "proper". Still, none-the-less, net bottom-line, effective!

coitus non circum - Moab Stone

[PhreeZone 20]

I've signed NDA's for DZ's before even though I know that there is little that could be done from the DZ side if I decided to tell the entire world how many jumps I did in a year or how many students were injured in a given year.

Non-competes are a joke since as an independent contractor you can terminate your "contract" at any time since you are not an employee.

Yesterday is history
And tomorrow is a mystery

Parachutemanuals.com

[ianyapxw 0]

Obviously you know the law much better than me.

It may not be enforceable in court but can it be enforceable on the basis that the two of you agreed to it previously?

[Whiteacre 0]

Non-compete clauses are enforceable in most states, only a handful of states have decided not to enforce them. Many states follow different approaches to non-compete clauses, but the jist of it is the agreement has to be for a reasonable duration, and limited in geographical location.

[Dokeman 0]

probably not gonna be able to enforce the non compete part, but technically they could get you on breach of contract.

[BIGUN 1,307]

Whiteacre

Non-compete clauses are enforceable in most states, only a handful of states have decided not to enforce them. Many states follow different approaches to non-compete clauses, but the jist of it is the agreement has to be for a reasonable duration, and limited in geographical location.

This. And yes, it can apply to independent contractors.

If you are an independent contractor subject to a non-compete agreement and concerned about violating the non-compete agreement, contact an employment lawyer before taking any actions that may violate the agreement.

SOURCE: http://kielichlawfirm.com/non-compete-agreements-independent-contractors/

Bottom line: Don't sign it and move on.

Nobody has time to listen; because they're desperately chasing the need of being heard.

[riggerrob 643]

BIGUN

***Non-compete clauses are enforceable in most states, only a handful of states have decided not to enforce them. Many states follow different approaches to non-compete clauses, but the jist of it is the agreement has to be for a reasonable duration, and limited in geographical location.

This. And yes, it can apply to independent contractors.

If you are an independent contractor subject to a non-compete agreement and concerned about violating the non-compete agreement, contact an employment lawyer before taking any actions that may violate the agreement.

SOURCE: http://kielichlawfirm.com/non-compete-agreements-independent-contractors/

Bottom line: Don't sign it and move on.

.................................................................................

A non-competitive contract is sooooo bogus for an independent contractor.

If the original DZO values his employees so much, he will work them so hard, and pay them so well, that won't have any desire to moonlight at another DZ.
Furthermore, the original DZO should pay his staff full-time staff a base salary for every day they are scheduled to work, even if it rains all day.
The best DZOs offer bonuses after staff have made "X" number of jumps with students per month.

[tdog 0]

The DZO, if new to employment law (you said it is a new DZ) probably has not considered what he is doing is addressed in IRS publication 15A which defines what are employees and independent contractors....

Quote

The extent to which the worker makes his or her services available to the relevant market.   An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.

The DZO is thus making instructors employees, and then must pay social security, Medicare, work comp, unemployment, etc.

Source: http://www.irs.gov/publications/p15a/ar02.html

[BIGUN 1,307]

riggerrob

******Non-compete clauses are enforceable in most states, only a handful of states have decided not to enforce them. Many states follow different approaches to non-compete clauses, but the jist of it is the agreement has to be for a reasonable duration, and limited in geographical location.

This. And yes, it can apply to independent contractors.

If you are an independent contractor subject to a non-compete agreement and concerned about violating the non-compete agreement, contact an employment lawyer before taking any actions that may violate the agreement.

SOURCE: http://kielichlawfirm.com/non-compete-agreements-independent-contractors/

Bottom line: Don't sign it and move on.

.................................................................................

A non-competitive contract is sooooo bogus for an independent contractor.

If the original DZO values his employees so much, he will work them so hard, and pay them so well, that won't have any desire to moonlight at another DZ.
Furthermore, the original DZO should pay his staff full-time staff a base salary for every day they are scheduled to work, even if it rains all day.
The best DZOs offer bonuses after staff have made "X" number of jumps with students per month.

No argument or siding with the DZO with the noncompete, Rob. Just been thru it in Corporate America before and making sure that folks do their homework before even considering such an agreement. Tdog is also spot on.

Nobody has time to listen; because they're desperately chasing the need of being heard.

[Andy9o8 2]

Quote

Non-compete clauses generally aren't enforceable

Are so.

[DiverMike 5]

Depends on the state, but they are generally enforceable. Some states they are practically unenforceable (like California)

For the same reason I jump off a perfectly good diving board.

[Andy9o8 2]

DiverMike

Depends on the state, but they are generally enforceable. Some states they are practically unenforceable (like California)

The majority of states still do allow them. Agreed, looks like California mostly does not. FWIW, I note the OP is in S. Carolina. SC seems to allow them, but restricts them to a limited basis: http://www.scnoncompetelawyer.com/basics/

Everyone would be well advised to get an attorney's advice in the particular state in which their employment takes place.

[Whiteacre 0]

According to an external link on Wikipedia's non-compete page, only North Dakota and Oklahoma do not enforce non-compete agreements. California might enforce them, but only as to trade secrets. The rest of the states will enforce non-compete agreements.

[katzas 1]

In the USA such contracts have been deemed invalid IF it says that you can never work for another one again--or even if it states that you can't work for another one for a period of time after you stop working for that DZ. Courts have deemed these contracts as restricting a man or woman from making a living.

[Andy9o8 2]

Please re-read the rest of the thread.

[dpreguy 14]

T dog. Correct. The non compete clause, by itself, probably vitiates the independent contractor status the DZ owner wants to maintain.

The states and the federal taxing and regulatory departments both lean to making a person's status as an employee, when the work terms are too controlling and too detailed, etc.. When that happens, the person who simply wants to pay independent contractors and issue 1099's might find that the regulatory/taxation agencies classifies them as employees and not as independent contractors. Then all of the employer's duties will be imposed. (Pay 1/2 of the employees' social security, unemployment, medicare, work comp. The list is long.)

The DZ owner might find that his non compete clause is enforceable under contract law principles, but along with it, find that he now has a bunch of employees, instead of 1099 independent contractors.

In life, and with he IRS, usually you can't have your cake and eat it too.

[grimmie 186]

John Hart

http://www.dropzone.com/forum/Skydiving_C1/General_Skydiving_Discussions_F18/Start_Skydiving_P3890011

He failed to pay payroll taxes for employees.

[DougH 270]

"Contractors"

Probably would be less contractors if there were workable workers compensation solutions for instructors, or exemptions.

"The restraining order says you're only allowed to touch me in freefall"
=P