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Thread: Non-Compete Clauses

  1. #1
    God/dess KatyBoleyn's Avatar
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    Default Non-Compete Clauses

    I just found a an article in the NY Times regarding non-compete clauses. It seems the rest of the economy is starting to deal with a reality that many cammodels already have had to deal with if they enter the adult industry through a physical or asinine virtual studio. States are starting to pay attention since its hurting the bottom line of their tax base and at least one state has legislation under consideration.

    If this kind of thing catches fire and goes through most states or even national law, certain contract clauses by studios may get banned - forcing them to either get model-friendly or die. As much as I'd hate the competition for our own operation, it would become a lot better for models (especially new ones).


    Thoughts?

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    Default Re: Non-Compete Clauses

    I mean, I get it. I used to work in an industry where I went directly to the homes of those receiving services, did my time, submitted paperwork to my employer, and they paid me and charged the client. However, the client was paying over twice what I was receiving and the company administration was never involved in the work or supplies that I did and used. The company was effectively taking a 60% administrative fee to pay out for expensive positions that didn't need to exist and the industry (which people can guess if they know me) very much enjoyed their 125% expected growth while I received just above minimum wage. Several of my customers wanted to take me directly, pay me more, and themselves pay much less, but could not because we were under a non-competition clause for 6 months. Let's just say that, in this case, the company was directly screwing over both myself and the client, who were very dependent on the services they received. I did end up leaving my company and taking several clients with me, but that wait period hurt all of us. I understand the point there though. Companies know that their only real job is to hook up customers and providers. Beyond that, they serve no purpose and can be removed. They're consultants. Hell, I do that as a side job now, but once it's been established and the providers are in place, I take my one-time cut and leave.

    I detest administrations that serve no purpose. If we're looking at studios, I would only accept them if they were doing some serious hustling on my part and consistently helping my earnings. Otherwise, they aren't much better than leeches to me. I think studios and non-competition clauses are fine, but they need to outline the responsibilities of the employer just as much as the employee. If the employer isn't doing what they're 'paid' their cut to do, they shouldn't have the right to restrict where their models go. Period. The problem I see with most studios seems to be that the select few doing their 'job' are lost in a sea of greedy leeches.


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    Default Re: Non-Compete Clauses

    ^ IA. It seems that the only purpose of non-compete clauses for most studios is so girls can't leave once they find out that the studio is pocketing a large chunk of their earnings for doing absolutely nothing. If they don't want girls to leave they should give them a reason to stay instead of cutting off their other options.

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    Senior Member AngelicaFox's Avatar
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    Default Re: Non-Compete Clauses

    I signed up at a brick-and-mortar studio and for unrelated reasons had to leave the state after working there for three weeks.

    I had signed a non-compete clause, but it was only presented to me after I'd been working for a few days. Before I began, I'd signed paperwork agreeing to forfeit any unpaid earnings should I leave without two weeks' warning. I understood this and agreed. But coupled with the non-compete that was presented to me later, it felt a lot less fair. (I was told I could opt not to sign the non-compete, but that would constitute quitting and—as previously agreed—I'd forfeit my earnings.)

    The non-compete clause was for a year. It specifies I can't do any cam work, not even from my own website. There's no geographical restriction. Because it is so broad, I question whether it's enforceable.

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    God/dess KatyBoleyn's Avatar
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    Default Re: Non-Compete Clauses

    It sounds like it probably wouldn't be, it would just depend on the state you challenged it in. The problem is that various websites will enforce it through their own rules, regardless of laws. I'd like to see them try to enforce it for indy work though, I think they'd spend way more money than they could possibly get out of you. Most of these studios aren't well run from a financial standpoint, they make a lot of money but the owner's spending habits and accounting abilities are generally pretty bad...leaving a whole lot of not much for a real lawyer and anything other than a scary letter.

    In our own business I've seen a few nasty things:
    - Contracts that don't ever mention non-compete clauses, but have standing agreements on the websites to enforce these anyways (IM and SM for example).
    - Side deals with websites that basically de facto enforce a permanent non-compete as a sort of recruiting bonus (i.e. Camsharks)
    - Physical studios will sit there and log in to model accounts long after they leave to keep the non-compete agreement going past the normal lock-out.
    - Studios, both virtual and physical, that will take a model's ID and sign them up under their studio on literally every site they can without the model's knowledge. (IM's little experiment with Chaturbate until CB stopped enforcing studio contracts, for example).

    I just really don't like the situation because there is a lot of room for real service businesses to fill that same niche if they were allowed, either providing real promotion services, pay services, headhunters, job placement, negotiators, answering services, retirement planning/insurance, etc, that are curtailed by the nature of the studio format on most websites. Non-competes without a legitimate cause is simply crony capitalism at its finest, not real capitalism where businesses should rise and fall on their own merit.

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    Senior Member AngelicaFox's Avatar
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    Default Re: Non-Compete Clauses

    Thank you for that information.
    I had a suspicion that they might try to keep logging in to my account to extend the period, but I don't know. I plan to contact Streamate and see if I can have the account locked out (they changed my password when I left, so I can't do it myself.)

    I'm obsessing over this, really. And I guess that's why they get away with this kind of thing. People like me are too afraid of even the possibility of legal action. My therapist says to remember that people get sued all the time over things they can't control. I need to work. I am considering phone sex as an alternative, but from what I've read so far it would not pay nearly as well.

    What I want to know is, is there anyone here who has gone on to work despite being forced to sign one of these "agreements"? I've scoured the web looking for precedent... I just want to know what's the worst that can happen, or what typically happens, so I can assess the risk.

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    Default Re: Non-Compete Clauses

    I really, really doubt that they'll bother to sue you, and I doubt even more that they'd actually succeed. It's a scare tactic.

    Contact Streamate to see if you can have your account closed. It may take a couple tries--when I tried to close mine through email they ignored me, they only responded when I used the support contact form, but it doesn't look like that's an option. If they have you signed up on any other sites I would try to get those accounts closed too and avoid them. Then sign up for a new site with a different name, different pictures, etc. Obviously I'm not a lawyer but IMO the chances of them being able to do anything when you're using a different name on a different site are slim to none.

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    Default Re: Non-Compete Clauses

    Its a brutal loophole with Streamate, where if the studio controls the email and password your account is attached to, there's basically nothing you can do about it. If the studio is asinine about it, they can keep you locked out pretty much forever on that site...unless you want to work the darkest of black magics and sorcery

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    Senior Member AngelicaFox's Avatar
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    Default Re: Non-Compete Clauses

    To my great surprise, Streamate took down my profile, no questions asked! I contacted them through email at [email protected] and told them I could provide identifying information, but they didn't ask me for it.

    This is the e-mail they wrote me:

    "Hello,

    The ******** account has now been closed permanently and is unavailable for use. Once your non-compete with the studio expires you can go ahead and open a new account."

    Yay!

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    Default Re: Non-Compete Clauses

    But I would totally have resorted to the darkest of black magics and sorcery if I had to

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    Default Re: Non-Compete Clauses

    Well, I put in my two weeks notice on Saturday with my studio. I've been on SM for two years. I had an actual acquaintance of mine come in and take me exclusive today and we were just shooting the shit, so to speak...long story short, foot in mouth, ranty-rant...my exclusive (which I was led to believe was totally private) was being monitored by my manager. Soooo, yeah, fired. Lost last week's wages, and the money I made today. But now I'm being faced with an exclusivity clause that I initialed when I signed a supposed contract with the studio when I started...I'm so pissed that I would've put my foot in my mouth in the exclusive, but I thought those shows were exactly that, exclusive. Regardless, he was an actual person that I actually know...I'm kinda lost here. Lesson learned though. But here's my question. I have been camming for a different place for at least the last three months. The exclusivity clause only forbids working for another site for a year AFTER I have been let go. Does that mean the other site is something I have to stop doing? Or is it exempt since I was already on there?

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    Default Re: Non-Compete Clauses

    Contact your state labor board. It is ILLEGAL to keep your pay, as in Federal LAW. They can not take your pay at will, any contract saying they can is also ILLEGAL.

    Don't need a lawyer, labor board will make them pay it or they will have to pay very high fines.

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    Default Re: Non-Compete Clauses

    It is not enforceable. and if they fire you then in most states its voided!

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    Default Re: Non-Compete Clauses

    Thank you both so much for that information. I guess the other post I read about studios trying to keep girls uninformed was right. I'm sick and tired of feeling bullied by them. It was almost a relief when they shut down my account. Too bad, though, since I'm one of only sixteen girls on the streamatetv's list of squirty girls...

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    Default Re: Non-Compete Clauses

    So I quit Internetmodelling through them (I had no choice, as SM support wouldn't do anything and neither could Liz) and I am kinda wondering if I should contact them again at some point and just ask them to take my profile down...to the best of my knowledge IM does let you go after your year is up, but I still wonder...I would like to get back there someday and don't want to be locked out forever and ever.

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    Default Re: Non-Compete Clauses

    Instead of going back, just find other cam companies & other eggs in the basket thing. Move on & make the best of it.

    If enough girls don't go back to companies that stand by studios they KNOW do us wrong then they will NEVER change.

    Where did these studios find you? Go place ads next to theirs how to sign up directly to a cam company, how that studio is a scam. Fight back. Write a blog, put that company & their unfair contract & lies on blast. Do it so much that when future girls google them, it comes up right under their site. Only way they can sue you for slander is if it is UNTRUE.

    Turn them into your local labor board. Let them get investigated by the U.S gov. No company wants them knocking on the door.

    Why do so many of you just take it? Why don't any of you fight back?

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    Default Re: Non-Compete Clauses

    ^^ I have to say that it has definitely been a good decision to leave SM in general, so I agree with you 100% on that.

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