Also, is this type of document legal? My new boss has asked every employee to sign a 5-year no-compete agreement. This agreement states that we agree that if we are ever fired from this job or quit, for the next 5 years afterward we cannot work in the same field/industry, as it might present competition for his business. Personally I really like working there, but I feel this is wrong for him to try to dictate where someone can or cannot work in the future.
2006-08-09 16:01:17 · 11 answers · asked by americandream1 2 in Business & Finance ➔ Careers & Employment
State law controls the rules on non-compete agreements -- so the answer to your question depends what state you're working in. In California, for example, non-compete agreements are, generally speaking, against public policy and unenforceable. In other states, like Tennessee and Texas for example, non-competes are valid as long as they are designed to protect the current employer's legitimate business interests, and are not unreasonably restrictive on the employee. High level executives, R & D technical staff, and high-level sales staff are routinely required to sign non-compete agreements as a condition of employment -- and these agreements are generally enforceable in those states that allow non-competes. Non-competes are more difficult for employers to justify for lower level staff (clerical, lower level sales staff, production workers), even in states where non-competes are allowed. Five years, by the way, sounds like a very long non-compete period to me -- most non-competes have terms of one to two years.
As a practical matter, you need to realize that if you don't sign the non-compete, you may lose your job. You would then be faced with finding another job where a non-compete is not required, or finding a lawyer and trying to sue your former employer for requiring you to sign what may be an illegal agreement (a tough thing to do). You might want to gently question your supervisor about the reasons for the non-compete and see if his/her answer clarifies things and/or makes you feel better about signing the agreement.
By the way, I don't think it is wise to sign the agreement with the idea that you won't abide by it when you move on to another job. Many employers will not hire someone who is bound by a non-compete because these employers don't want the hassle of a possible lawsuit by the former employer. So, think about this carefully and be sure you can live with whatever you decide to do.
This is a difficult situation -- good luck!
2006-08-09 16:56:53 · answer #1 · answered by Suzanne R 1 · 0⤊ 0⤋
unforetuneately, there is no black and white answer to the question bc it depends on the state you work in. in most states, employees are categorized as what they call "at will" which pretty much means you can be fired for just cause or no cause at all. with that being the case, in theory, they can force employees to sign a non compete agreement. now the next question is whether or not that document would ever be enforceable should you decide to break it. if you are a senior level person and hold many trade secrets for your company, then sure, i can see the company doing anything they can to enforce it including go through court proceedings. however, for ordinary employees, there are ways out. i have found this site to be helpful when doing my research on this topic. http://www.breakyournoncompete.com/sample.htm
2006-08-10 01:28:42 · answer #2 · answered by Paul S 3 · 0⤊ 0⤋
Non-compete agreements are common in many professions, and if you don't sign, you probably won't keep the job. But five years is a much longer than usual time - I'd check with a lawyer whether that is legit. One or two years is more common.
2006-08-10 00:38:44 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Non-competes are legal but they have to be fair in geographic/time scope and cannot be unconscionable. I don't know if absolutely limiting you from working in the same field/industry without a geographic limitation is fair. Please consult with an attorney before signing anything like this. It may be substantively unconscionable.
2006-08-09 23:12:57 · answer #4 · answered by Lindsey 2 · 0⤊ 0⤋
i think it is borderline, but i am not a lawyer.
it is MUCH more common to have non-disclosure agreements , that say you can not take information about clients or products that you learn in this job to another job.
Unfortunately, to really find out if it is legal may take a court case.
2006-08-09 23:08:37 · answer #5 · answered by nickipettis 7 · 0⤊ 0⤋
Make sure "same field/industry" is spelled out in extreamly specific detail. Otherwise it will just end up in legal battles if you sign it.
2006-08-09 23:08:28 · answer #6 · answered by RyanSmith 3 · 0⤊ 0⤋
Do not sign any paper until you talk to a lawyer since anything you do it may backfire on you. Or tell your boss that you will think about it and on the side talk to a laywer.
2006-08-09 23:08:03 · answer #7 · answered by leyte6519 3 · 0⤊ 0⤋
If you don't want to sign then quit.
In reality, non-competes aren't worth much. Most courts consider them in restraint of trade.
2006-08-09 23:08:38 · answer #8 · answered by Oh Boy! 5 · 1⤊ 0⤋
I don't know - but that sucks. I think it prevents you from being lured by competitors and also from spilling company secrets to a competitor if you get a job there.
2006-08-09 23:07:11 · answer #9 · answered by ? 6 · 0⤊ 0⤋
Yes, it's legal. If you don't agree, you could leave.
2006-08-09 23:04:25 · answer #10 · answered by a41xblj 4 · 0⤊ 0⤋