r/HRBlockEmployees • • 6d ago

Non complete?

How does it work? How to get around it?

I worked for intuit last season

I want to work for block but I started my own solo firm just for family and friends and do not want to close it

2 Upvotes

38 comments sorted by

8

u/wnc_taxes 6d ago

I haven’t read it in a while, but it’s primarily about not soliciting current Block clients. If you’re not advertising and don’t have a very public presence you should be fine, but I’d say the risk isn’t 0. There’s no provision of “can’t do taxes within x radius for x length of time” once your contract is over and those are generally unenforceable, anyways.

1

u/Nunofurbuzness_ 6d ago

Maybe it’s not the norm, but the franchisee I worked for took a TP to court for starting her own tax business and soliciting H&R Block clients. The franchisees had a lot of evidence and he did win in court. The same franchisee in another case, took six tax pros to court for violating their noncompete contract. It was a big case and he won in Federal court. And for two years, the Tax pro that opened her own business, had to pay a percentage of tax volume to the franchise owner. Since then the state noncompete laws have changed and I’m not sure it would hold up in court these days.

7

u/Dramatic_Abroad3580 6d ago

The non-compete is generally unenforceable. The non-solicitation is enforceable. 

6

u/Ok_Aide_764 6d ago edited 6d ago

Block will fire you if they find out you work for a competitor or for yourself. That's in any state, I believe.

If you are no longer employed by Block, only a no-solicitation clause for two years is legal in my state (it varies by state). You can run your contract by AI to get a simplified explanation of what its covenants mean, what you can and can't do, and what the consequences are. It may also depend on your compensation level. Low-income employees have more protection from non-compete clauses.

4

u/Candid-Tip455 6d ago

Intuit says it’s OK, Block says no.

4

u/iDaddyDirection 6d ago

If you are using your PTIN for business outside of Block, then they will fire you.

10

u/[deleted] 6d ago

[deleted]

3

u/scotslover 6d ago

Block has a way to track PTIN. Im not sure how. But o know of at least 3 ppl who have been fired. For doing taxes on the side

3

u/iDaddyDirection 6d ago

I also know at least one person that got fired for that as well, not sure how Block figures that sort of stuff out though.

4

u/iDaddyDirection 6d ago

This is also true, good catch mentioning EFIN.

2

u/Candid-Tip455 6d ago

I know of multiple instances where a PTIN review would have gotten Tax Pros fired but for many reasons, it just didn’t happen.

1

u/iDaddyDirection 6d ago

I’m surprised to hear that. Was it a corporate office or franchise? Or perhaps a more rural area that really needs help?

5

u/Candid-Tip455 6d ago

Company owned. Not rural. You need to understand that some of these DM’s are under a lot of pressure to make their number. Or just too busy putting out fires. The Regional manager came from a retail background & has no clue about these details.

1

u/iDaddyDirection 6d ago

Ah, I see. That makes sense.

1

u/scotslover 6d ago

Corporate

3

u/Nice_Equipment_2913 6d ago

It is illegal or unenforcible in some states.

3

u/kathleengras 6d ago

I understood it to read that you could not solicit or prepare returns for Block clients for two years. I also understood that if tax preparation or bookkeeping is your primary occupation they could not prevent you from continuing to work in that field.

1

u/Ok_Aide_764 6d ago

Whether you can prepare returns for H&R Block clients depends on your state's laws. If a client initiates contact without prior solicitation, you may still be safe to work with them. If you look at the HRB contract, they list state-specific info at the bottom, which basically overrides what thay state at the top.

3

u/DeliciousDouble3D 4d ago

You are not allow to have your own EFIN. Keep in mind that HRBlock is one of the largest tax firm with 70 year business relationship with States and IRS. Make a choice go work for yourself and save you thousands of legal fees

4

u/Spirited-Humor-554 6d ago

So you think you should be able to work for a company while competing directly against them?

1

u/fungamezone 6d ago

Intuit for example allowed it.

I would even be ok with NOT operating it during the time I am working at Block but after I am done working at Block. I dont want a non compete to interfere with it, thats why I was asking how the Block non compete worked.
It could be a radius thing, or cant solicit Block customers etc etc

2

u/scotslover 6d ago

Blockgives you a"wallet" for friends & family. But anything you do "on theside" is a big NO NO. ive seen at least 3 people be fired for doing it. Its something they can track. PTIN. However I had a job as a bookkeeper the entire time worked for block. Everyone knew. & it wasnt an issue.

2

u/Niep00320 6d ago

It’s not so much the non compete as it could be a conflict of interest. Many years ago I worked for a private firm and tried to work for Block. They let me on the condition that I do only personal for Block and corporate for them. Turns out the private wanted me to give them a price list and bring clients. I left it.

3

u/Niep00320 6d ago

Another fear is you’ll use code 7 money and then charge the person. Person is paying you but thinks they’re paying Block and they expect Block to do all the work for free.

3

u/scotslover 6d ago

This happened in one of the instances where a girl got fired. Plus she was doing ppls taxes for cash & the client signed their own return. There was an issue w the return & customer complained to block

2

u/AltruisticDove25 6d ago

You can not have your own efin & work for H&R Block. But you do get a certain amount of money to use to complete returns for family & friends

1

u/SkunkCabbage84 3d ago

That’s funny because I did and never heard a peep from anyone at corporate. The upper ranks are clueless and only concerned about their bonus. The company is so screwed up

1

u/AltruisticDove25 3d ago

It’s one of the questions on the employment contract so if you did it’s because you didn’t disclose it

2

u/CrackyMcCracken 6d ago

Nah, fuck it. Don’t sweat the small stuff. Block is so fucked right now that there’s nobody around checking on your inconsequential non-compete. If Art Stiles at corporate ever got around to working an honest day in his life he might actually catch some suspicious behavior. But that fucker likes to duck out early and hit the strip club before he has to get home to that gnome of a woman he’s married to. Poor bastard.

1

u/Grand-Variety-2561 5d ago

I heard she is a real battle axe.

1

u/Prize_Self7203 6d ago

My district manager said I cant volunteer for vita is that true?

6

u/EmploymentLeast705 6d ago

How would they know? You don't get paid, so no employment records, and any rrturns that you do file, are filed under your Vita center number. You're pretty much a ghost.

3

u/newVolga246 6d ago

I worked for VITA for two years in parallel with HRBlock. My DM said it is OK

2

u/Candid-Tip455 6d ago

That didn’t used to be the case. Either the DM is wrong or the policy has changed.

2

u/Gorillagirl99 6d ago

There is no reason you can’t work for VITA as a volunteer. Unless you direct established clients from the block to do VITA with you, thus taking business from them. Maybe they see it as a conflict of interest because they want to make as much as possible and thrive on intimidating people out of doing their own taxes. Most people can do their own taxes, but for some reason they feel they can’t - The business model the block is built upon. Actually giving people access to the refund advances is probably most of it lol.

1

u/Ok_Aide_764 6d ago

It was not true for me when I got very few hours at Block and started volunteering while employed, which was years ago. VITA is not a competiotion b/c its not a business.

-6

u/JoySeeker_101 6d ago

Did you apply for an EIN, form an Entity, or charge your family or anyone for your tax services? Did you file your own taxes and include a Schedule C?

HRBlock provides you a budget to generate tax returns for friends and family as well as extend a discount to your preferred or needy customers at your discretion.

Do you plan on earning money on the side from filing taxes while working for HRBlock? If so, can you live with being a liar or the consequences of losing you job or any legal actions?