Can an employer force an employee to sign an unreasonable non-compete clause if the employee has been working
for them without incident for several years. If the employee is terminated for not signing would they have any recourse for wrongful termination?
Answers:
They can not force you to sign a non compete clause, you have the right to refuse. However, they have the right to re evaluate your job position and employment.
Do remember this, if this was your field before working for this company then your on better legal standings than if they hired you, trained you in that position.
It is a very sticky legal situation. The company has the right to protect its methods of operations if they are so specific that no other company uses that same or similar methods. A construction company can not require a non compete clause from an employee because there is very little variance in construction methods. However, that same company may demand a non complete clause if you were say the main job bidder for the company and you are taking their business plat form or data base to use for yourself or others.
Its very sticky, if the job is worth keeping take the NCC to a cooperate attorney for review, it will be worth the money if your looking to switch jobs or hike out on your own.
Yes they can do it, but that doesn't mean the non-compete agreement will be upheld in court. Infact, most courts HATE non-compete agreements. You would NOT have any recourse for termination. This is a NORMAL practice. Just take the non-compete agreement to your attorney and have him/her look it over. Non-compete agreements must have a Reasonable Time Limit, a Reasonable Area Affected, and must be specific as to the type of competition you may not engage in. As for what is "reasonable" it just depends on where you are.
non-compete clauses are used because they are training you with their methods. Legal and enforceable.
In 1999, my boss and five other high placed executives were fired by the owner for refusing to sign such a non-compete. This company suffered through a rough period after firing its top salesman.
The bottomline is that the company can do it, but usually pays a high price for such onerous behavior.
Oh and the salesman was hired back on a contract basis at a huge sum of money.
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