Non-Disclosure/Non-Compete Contract
I have been working for a company in Ohio for over 8 years. Recently, they have told all of us we must sign a non-disclosure agreement but it includes not being able to work for customers, suppliers, or anyone we have contact with in our business for 1 year. We are not being given any additional compensation for signing the agreement. What should I do?
1 answer | asked Oct 6, 2005 7:04 PM [EST] | applies to Ohio
Answers (1)
Do not sign the non-compete without knowing what could happen
The good news is that you are asking whether to sign a non-compete before you actually sign it. The bad news is that your employer wants you to sign a non-compete.
Nothing in the law is certain, but when it comes to non-competes, the best advise is "do not sign it." Why? Because signing it can wreck your career.
Begin by reading the non-compete carefully. Assume that a court will enforce it exactly as written. Chances are that a court would do so. Then imagine every possible next job that you might want to pursue and figure out which ones the non-competition agreement would block.
The results can be pretty frightening. In one case an employer fired a long service, successful salesman without cause. The employer fired his fiance, too, and then marched to court to prevent the salesman from working for any competitor within driving distance. The salesman was in a highly specialized field, so he chosen line of work was blocked.
Another client brought his book of business to his employer, who made him sign a non-compete and then fired him. Absent a court battle, he was finished in his field.
The conventional wisdom is that courts do not enforce non-competes. That is not entirely correct. Perhaps more important, once the employer files suit, it will cost the employee thousands and even tens of thousands of dollars. In many cases, the employee (who may not be working) simply cannot afford the cost of challenging the non-compete.
Therefore, do not sign this non-competitionn agreement unless you have adequate, other options for your career. For example, you need to be able to find work in your area using your existing skills. If the non-compete would prevent that, go find the new job now. Another option is to bargain for severance pay during the non-competition period.
If the choice is to sign it or get fired, consider calling for a consultation to explore your options in more detail.
Best regards,
Neil Klingshirn
posted by Neil Klingshirn | Oct 7, 2005 08:53 AM [EST]
The good news is that you are asking whether to sign a non-compete before you actually sign it. The bad news is that your employer wants you to sign a non-compete.
Nothing in the law is certain, but when it comes to non-competes, the best advise is "do not sign it." Why? Because signing it can wreck your career.
Begin by reading the non-compete carefully. Assume that a court will enforce it exactly as written. Chances are that a court would do so. Then imagine every possible next job that you might want to pursue and figure out which ones the non-competition agreement would block.
The results can be pretty frightening. In one case an employer fired a long service, successful salesman without cause. The employer fired his fiance, too, and then marched to court to prevent the salesman from working for any competitor within driving distance. The salesman was in a highly specialized field, so he chosen line of work was blocked.
Another client brought his book of business to his employer, who made him sign a non-compete and then fired him. Absent a court battle, he was finished in his field.
The conventional wisdom is that courts do not enforce non-competes. That is not entirely correct. Perhaps more important, once the employer files suit, it will cost the employee thousands and even tens of thousands of dollars. In many cases, the employee (who may not be working) simply cannot afford the cost of challenging the non-compete.
Therefore, do not sign this non-competitionn agreement unless you have adequate, other options for your career. For example, you need to be able to find work in your area using your existing skills. If the non-compete would prevent that, go find the new job now. Another option is to bargain for severance pay during the non-competition period.
If the choice is to sign it or get fired, consider calling for a consultation to explore your options in more detail.
Best regards,
Neil Klingshirn
posted by Neil Klingshirn | Oct 7, 2005 08:53 AM [EST]
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