Working with a large retail chain here in Cincinnati and they want to add a non-compete clause preventing me from working with their direct competitors for 2 years. This would basically lock me out of auditing any major retailer in the Duke Energy Ohio territory. Is this standard practice? Seems overly restrictive for utility bill auditing work.
Non-compete clauses in engagement agreements?
Cecilia, I've seen this request before but usually negotiate it down to 6 months and only for companies in the exact same industry classification. Two years is excessive. In my Idaho Power territory, there aren't enough clients to accept that kind of restriction.
I refuse non-compete clauses entirely. Utility auditing isn't proprietary - we're just checking tariffs against bills. If they insist, I walk away. Plenty of PPL and Met-Ed customers in Pennsylvania without those restrictions.
Counter-propose with a non-disclosure agreement instead. That protects their confidential information without restricting your ability to work. Most reasonable clients will accept that compromise. I use this approach with Tennessee Valley Authority customers all the time.
Albert's suggestion makes sense. I'll propose an NDA with specific confidentiality terms instead. If they won't budge on the non-compete, I'll pass. Not worth limiting my entire practice for one client, even a big one.
Smart move Cecilia. I've found that clients who start with unreasonable demands usually have other issues down the road. Better to establish boundaries early. Plenty of Dominion Energy customers in South Carolina who are more reasonable.