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Non-competition agreements are a widely used device in sales and other skilled employment settings. An employee may be required to sign such an agreement as s/he begins employment, or may be directed to sign one at some later date. Whatever the imagined urgency to secure a position, the employee needs to be careful! The “non-compete” agreement will usually seek to severely limit the employee’s future employment in the field over a wide geographic area. Contrary to common belief, the typical non-compete clause will survive and continue to haunt the employee even after termination of the relationship – even by the employer. It is thus prudent to consult with legal counsel before signing any such agreement. At a minimum, an employee should know the legal ramifications of what s/he may be signing. The boss’s assurance that “This is just a formality” is not a substitute for legal advice on what that formality means.
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Many clients only consult counsel about these clauses as they are in transition to some new employment. The opportunity to negotiate the agreement itself is, at that point, long gone. The task at hand is to help the employee make a viable transition to new employment. The firm has handled a variety of these matters. Specific advice will hinge on the specifics of your situation. To begin to provide advice, it is important to know, first, the terms of the agreement; second, the circumstance under which it was signed (i.e., when did you sign it and what, if anything, did you receive from the employer at that time?); and third, what the employer has been doing in comparable situations.
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