You Own You.
This simple post is for musicians. Especially those in the cruise industry. It's a small post that's part of a more extensive series on agents and understanding a representation contract. Today's post is about non-compete clauses.
Understanding Covenants to Not-Compete, or non-compete clauses, are involved. There are many variables. In the United States, each state has its own laws that constitute the enforceability of these clauses. Because there are so many variables, I am going to provide information most relevant to the experiences I've encountered. To start…
A familiar scenario...
Person A has a steady gig at a restaurant providing a jazz trio.
Person A engages the services of two other musicians to perform as members of the Trio.
Drummer B approaches the restaurant owner and offers a cheaper option than Person A.
While not written out, when you are on someone else's gig, there's an implied agreement not to steal from the leader. Agents use a similar clause in their contracts, they're called "non-compete" or "restrictive covenants."
Typical Attributes of a Non-Compete Clause:
Restrict an individual from engaging in competition with their previous employer/agent.
Limited in scope: the clause may be in effect for a pre-determined time after employment ends and/or cover a limited geographic region.
These types of clauses are common in employment and artist representation contracts. Like the scenario of the jazz trio, they're designed to protect an employer's interest while not restricting an individual's ability to secure work.
Cruise line agencies use similar non-compete language in their representation agreements with artists.
What makes them different?
Restrict an individual from engaging in competition with their previous employer/agent? Yes.
Agrees upon a pre-determined time after employment ends? Yes.
Limited geographic region? No, as it's not relevant. Some contracts limit an individual's ability to seek employment with sister brands. This may not be legal - always consult an attorney.
Take-Aways
Non-Competes are a legitimate and fair way of doing business.
Agents use these clauses in a way consistent with others.
Musicians use these types of agreements without realizing that we do - it's built into our culture.
Why do musicians and agents get into trouble?
The problems most often stem from other parts of the contracting process, and most agencies do not have a clear picture of their client. We will continue to discuss this and other topics over the next several days. Follow along to learn more.
Agents Don’t Own You.
You Own you.
Mini-Series Disclaimer:
I'm not a licensed legal professional. I'm not offering legal advice. I am providing insights from previous experiences in the entertainment industry and from working as an agent. If you have legal questions, concerns, or need legal advice, always contact a licensed legal professional.