[Anonymous]

I passed my exams and have been licensed for a couple months now. Upon receiving my licensing I asked for a raise. I was given on, but it was lower than our agreement 2 weeks prior, and it also came with a 10 page contract with a bunch of restrictions. For 1 that the CPA firm I am employed with has “exclusive rights to my accounting services” and that if I quit I cannot do anything with current firm clients for 3 years (even if they come seek me out). Currently i am under a non-compete and from what I understand this just means that I can go out and try to steal the firms clients, rather the clients can come see me. For reasons including the raise was less than what I was told, the environment around the office has been somewhat hostile, and committing to this contract that had very intense legal consequences for breaching the contract, I decided not to sign the contract and am still at my wage prior to my licensing.

My question is; is it typical for CPA firms to require CPAs to sign contracts? And what would YOU guys do?

[impska]

I don't have one and I would not sign one unless it came with a significant severance package.

Doubly so when they backtracked on the amount of the raise.

You asked them for something that was reasonable – a raise. Totally normal. Employees ask for raises all the time. No big deal.

They turned around and said, “We will only give you something reasonable if you sign this contract imposing a bunch of unreasonable restrictions on you.”

If you sign that, it puts you in an awkward position if you want to work for someone else, for yourself or if they fire you in the next 3 years.

REG - 94
BEC - 92
FAR - 92
AUD - 99

[AGI]

To andrealbenes,

I would suggest you don't sign it. One of the reason why they made you sign a contract especially with 3 years exclusive rights to my accounting services is mainly because they see that you want a raise so badly. But they don't want to give it to you, instead, they made up this awesome contract and try to hook you in. (And if it's a person that REALLY wants the money, he will sign it).

I would say the 3 years and the exclusive services part is just too much. How much will they give you? I bet if you work part time during tax season, you can already made up that amount.

Also, you have to be aware for the next N year, you can't do any outside service. (Including Tax). And you cannot possibility jump to another firm for ANY position (not just accounting). Therefore, unless you think you are earning your best salary, and this will be your LAST accounting related job, you can sign it.

NY - CPA

New York - NYC
Passed CPA Exam (11/2014)
In search for a position in NYC that will fulfills the license requirement.

[Anonymous]

Those were my sentiments exactly. I have been here for 6.5 years and the communication is not great. In fact when i went to discuss the raise my immediate boss didn't even come to the meeting. Instead I had to talk for 3 HOURS with the owner of the firm who works and lives in an entire state! So after they came back with a dollar amount $3.5 per hour less than what the owner said he would give me. That entire week I just said I had to think about it and the whole atmosphere from my immediate supervisor was completely hostile. So when I told her I wasn't going to sign I don't think she was too pleased. It just felt wrong in my gut. I just didn't expect a huge contract like that but I thought maybe I was over thinking it and most CPAs do sign something like that. Thank you for reassuring my gut and family's advice!

[M.O.D.]

Non-compete contracts are not worth the paper they are written on. Courts do not recognize them, especially if you are a lowly employee. They are written by dumb lawyers to scare ignorant employees.

So sign away and pocket the money.

Six months is generally what the courts will consider and that is only for executives.

This is because the courts know that employees are under financial duress to sign, and are under financial duress to work. And the right to earn a living to eat is higher than any contract.

Besides, no firm would spend tens of thousands of dollars in legal fees to sue you to lose in court and to save what? the profit of a client?

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[MayBeeCPA]

I had to sign a similar contract when I started at my firm and I'm only a staff accountant. If I leave to another firm or start my own firm and take any clients with me in the first three years, my current firm has a right to all collections. It's crazy, but I figured it was standard. Because of this crazy policy I was doing the 1040's for the all the family members of the girl I replaced.

BEC: 74, 78
FAR: 73, 77
AUD: 77
REG: 67, 71, 68, 76

DONE!!!!!!!!!!!!!!

NINJA 10 Point Combo

[Author]

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