Noncompete Agreements are a Pest: It’s Time to Lift the Trap

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Professionals in the pest control and HVAC fields show up to your home when you need them most. Unexpected repairs can be a pain for consumers and their budget, but millions of Americans depend upon short notice visits by an exterminator or HVAC technician to nip the issue in the bud or to keep unsightly bugs out of sight.

These workers’ talents are always in demand. A free, fair, and competitive economy would permit these types of workers to launch their own businesses with lower prices or better quality services for their customers, or to negotiate better pay or job conditions with their current employer. Sadly, that’s not always the case, thanks to noncompete clauses that trap them in their current positions or force them to endure serious hardships to switch jobs.

The FTC recently took action to provide relief from these harmful provisions. In April of this year, the FTC finalized a rule that bans employers from entering into new noncompetes with workers.^[1] The rule also bans employers from enforcing existing noncompetes, except noncompetes with senior executives. The vast majority of the commenters—about 25,000 of them—told the FTC to retire noncompetes once and for all. We heard from numerous pest control professionals and HVAC technicians about how noncompetes affected them.

Among those weighing in was a specialist in mosquito abatement, Kris, who explained that just two days after submitting his comment, he would be separated from his family thanks to a noncompete—forced to relocate from Mississippi to the Cayman Islands to find work and to leave his family behind for two years.^[2]

Patrick, a HVAC technician from North Carolina, told us that his noncompete blocked him from selling any HVAC equipment for five years within 500 miles should he leave his employer. This “sweepingly broad language” of the noncompete “was offered with no additional compensation, years after [Patrick] was fully employed by this individual.” Patrick felt he faced an impossible choice, because he “was told to sign it or [his] employment would end.”^[3]

John, a mid-level HVAC executive from Georgia told us about how after he left his employer for a smaller company with better compensation and growth opportunities, his employer took action to enforce a noncompete against him. The employer’s lawyer went so far as to send a menacing letter during the holidays, creating considerable emotional distress for his family on Christmas eve.^[4]

Another worker in the pest control field, who wished to remain anonymous, shared with us that the idea of going toe-to-toe in court with a well-financed employer serves as a powerful deterrent to changing jobs. The worker found the noncompete clause particularly inexplicable because he “ha[d] no access to trade secret's [sic].”^[5]

Josh, a resident of Missouri and five-year veteran of a pest control company told us about how he felt forced to sign a noncompete clause that feels like “a prison sentence.” Six months after his start date, his employer presented him with a noncompete agreement, which Josh felt he had no choice but to sign because he had “a wife and daughter to provide for, so I NEEDED my job.”^[6]

The FTC’s rule banning noncompetes was scheduled to come into effect on September 4, providing relief for people, like Kris, Patrick, John, Josh, and countless others who wrote the FTC. However, a judge in the Northern District of Texas issued an order stopping the FTC from enforcing the rule on that date. The FTC has appealed that decision.

In the meantime, the FTC can continue to address noncompetes through case-by-case enforcement actions. And we know pest control professionals and HVAC technicians will continue to show up – to treat a client’s home for termites or duck into a crawl space to fix faulty wiring – even as they wait for courts to rule on their economic freedom.

Profession	Public Comment
Image	“This Sunday, I'll be leaving my wife and 2 kids behind in Mississippi as I go take a new position in the Cayman Islands. I’m doing this because in a small industry such professional mosquito abatement, it was almost impossible for me to get anyone to hire me because of my existing non-compete agreement…So, I’m moving internationally until my 2 year non-compete is up, then hopefully can come back to the United States….I signed [the non-compete] several years ago to get a raise and promotion. I needed the money then, so I didn't have much choice. I am in support of making these agreements illegal…” -Kris N. Mississippi
Image	“I am an individual covered by a noncompete that essentially limits me from working in any capacity by any organization that touches HVAC equipment for 5 years, covering about a 500 mile radius from my house. Leaving my current employer would result in me needing to make a complete career change. This essentially means I must choose to continue working for this person or risk the ability to provide for my family. I understand in certain circumstances a non-compete is needed to protect investment and training, but making something so broad like in my case essentially limits my ability to seek additional compensation or benefits due to the sweepingly broad language used. My noncompete was offered with no additional compensation, years after I was fully employed by this individual. I was told to sign it or my employment would end.” -Patrick. North Carolina
Image	“As a mid-level executive in highly specific field of HVAC, I strongly support loosening of restrictive employment practices and non-compete agreements. I worked for a company for 9 years and moved into various lateral job functions without a significant title or responsibility increase (because I was trapped). I recently left to go to a much smaller competitor that was starting in the market that gave me a promotion and a path to career and financial growth. After 3 months, I received a threatening letter from an attorney on Christmas Eve. This caused significant emotional concern for my entire family. While I will abide by the terms of the agreement, customers should be allowed to buy from me if they like me and my products better. Employees should be able to leave and work for me if I provide a healthier environment and more opportunities for growth.” -John C. Georgia
Image	“I work in the Pest Control industry. I have no access to trade secret's however if I attempt to leave the Corporate world. I am threatened by lawsuits with my noncompete. Please Vote to End Noncompetes.”  -Anonymous
Image	“The non-compete agreement from an employee's standpoint really makes you feel trapped. I have been working at pest control company for about 5 years. When I was first hired there was no discussion of a non-compete agreement throughout the hiring process. After I had worked there for around 6 months, they ask me to sign the non-compete or really lose my job. So, at that time what choice do I have? I have a wife and daughter to provide for, so I NEEDED my job, so I was basically forced to sign a prison sentence. I understand the company wanting to protect their assets but keeping me from better myself and creating my own assets possibly with another company just seems unfair...Please put a stop to this dictatorship that the business owners have over their employees and allow us to be free to live and make choices to better are families and situations.” -Josh F. Missouri