Fulltime Employee Freelancing Restrictions
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Hi Mike, I think that without more specifics, you can't get a more focused response to this question: consider two scenarios: 1. You hire a full-time employee for graphic design, stock options are part of their package, you provide medical benefits and other typical employee benefits. 2. You hire an employee less than full-time, or in an outside "contractor" role, for graphic design. They receive no benefits like medical-care, sick-leave, vacation pay, etc. For both designer and employer, I think there's a world of difference in these two scenarios. If you are running a software company with other people's money (venture capital, publicly listed stock, or private stock), you have some obligations as employer that may be legally much more restrictive, depending on contractual obligations. If I am a programmer with stock in a start-up, working sixty-seventy hour weeks in the prime of my life, on the wing-and-a-prayer that the company will be "cashed-out" somewhere along the line, and I see another employee I know is "moonlighting:" is that any of "my business" ? Assume you are a venture-capitalist being invited to put a substantial investment into a start-up company where there is a high-risk of failure: how would you react to the CEO telling you that company policies allow work being done off-site by employees, or outside employment ? Note, that if what your company does is primarily graphic-design related, that would involve a whole different slant on the issues involved in your hiring a designer, imho. Issues of copyright and trademark, in that case, might be more significant ? best, Bill
"Many : not conversant with mathematical studies, imagine that because it [the Analytical Engine] is to give results in numerical notation, its processes must consequently be arithmetical, numerical, rather than algebraical and analytical. This is an error. The engine can arrange and combine numerical quantities as if they were letters or any other general symbols; and it fact it might bring out its results in algebraical notation, were provisions made accordingly." Ada, Countess Lovelace, 1844
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BillWoodruff wrote:
Issues of copyright and trademark
In the US an employee fall under work for hire. Thus there is no question that the work that they produce for the company belongs to the company.
jschell wrote:
In the US an employee fall under work for hire. Thus there is no question that the work that they produce for the company belongs to the company.
Hi JSchell, Nothing in what I said, and in the examples given in my response, implies that the work a person does for a company does not belong to the company. The examples I talked about are based on direct experience in the software industry in the U.S. Issues do arise that are specific, even unique, to employment (and termination of employment) of graphic designers, and that do intersect with legal definitions of trademark and copyright. best, Bill
"Many : not conversant with mathematical studies, imagine that because it [the Analytical Engine] is to give results in numerical notation, its processes must consequently be arithmetical, numerical, rather than algebraical and analytical. This is an error. The engine can arrange and combine numerical quantities as if they were letters or any other general symbols; and it fact it might bring out its results in algebraical notation, were provisions made accordingly." Ada, Countess Lovelace, 1844
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Hi Guys, Just trying to get a feel for general opinions on what "appropriate" rules for employee freelancing are. I've never really had to worry about this too much in the past, but we are hiring a graphic designer and I want to establish reasonable freelancing guidelines. I've been unable to find very much in terms of helpful resources on the internet to assist with this. Should employees be able to freelance and essentially directly compete with your business or provide services to your competitors? There is an obvious conflict of interest there, but I'm not sure if specifying that they aren't allowed to find their own clients or do any after-hours paid work is too dictator regime-ish. Perhaps letting them freelance in areas that the company isn't focused on would be reasonable, like if you do website design, let them freelance for print design? I'm not sure where to draw the line here though, we are open to providing any services our designers are capable of providing, and we often get random requests. Employees: - What are your employer's restrictions, if any? Do you think they are reasonable? Employers: - What restrictions do you impose? Have you run into any grey-area problems before, and if so, how do you resolve them? Others: - Any general thoughts appreciated. Thanks, --Mike
In this case, it's graphic design, so why do you care who else they design for? If you're worried about your specific work created for you, then get that copy-written. Now if he was creating algorithms, or other more business dependent work, then you should consider non-competes, though, I think most would turn it down. Think, is his contract with you more important than every single potential future contract?
Craigslist Troll: litaly@comcast.net "I have a theory that the truth is never told during the nine-to-five hours. " — Hunter S. Thompson
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In this case, it's graphic design, so why do you care who else they design for? If you're worried about your specific work created for you, then get that copy-written. Now if he was creating algorithms, or other more business dependent work, then you should consider non-competes, though, I think most would turn it down. Think, is his contract with you more important than every single potential future contract?
Craigslist Troll: litaly@comcast.net "I have a theory that the truth is never told during the nine-to-five hours. " — Hunter S. Thompson
Well, it's a small business, so many hats are worn by all. In this case, it's a "graphic design" position, but they are also expected to help run advertising campaigns, go to conferences/events and promote our business, hand out business cards, etc. Copied from one of my posts above: The only time "side work" has ever been an issue was when someone called the office because they had a company business card for our graphic designer and asked them if they do websites on the side. That was an odd thing for someone to ask, but what do they say in response? "yes but I'm at work, you can find me"? "yes but I'm at work, here is my number"? "No"? "I cant discuss that at work, but we provide website services here, would you like some information"? I think the last one is most reasonable. At the office when they answer our phones it is expected that they are acting as representatives of the company in the interest of the company. I think that's fairly reasonable, eh?
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Well, it's a small business, so many hats are worn by all. In this case, it's a "graphic design" position, but they are also expected to help run advertising campaigns, go to conferences/events and promote our business, hand out business cards, etc. Copied from one of my posts above: The only time "side work" has ever been an issue was when someone called the office because they had a company business card for our graphic designer and asked them if they do websites on the side. That was an odd thing for someone to ask, but what do they say in response? "yes but I'm at work, you can find me"? "yes but I'm at work, here is my number"? "No"? "I cant discuss that at work, but we provide website services here, would you like some information"? I think the last one is most reasonable. At the office when they answer our phones it is expected that they are acting as representatives of the company in the interest of the company. I think that's fairly reasonable, eh?
Mike Marynowski wrote:
"I cant discuss that at work, but we provide website services here, would you like some information"?
Ok, if you're talking about getting business through their work with you, during business hours, that's a big bad no no. Are people thinking that the freelancer will be able to the exact same service your company provides? If so, yeah that would be stealing leads or customers away. If someone calls your company to contact you guys to provide a service, I would make it policy that your employee should not be able to work with then.
Craigslist Troll: litaly@comcast.net "I have a theory that the truth is never told during the nine-to-five hours. " — Hunter S. Thompson