For many companies, asking salespeople to sign a non-compete agreement is a standard part of the hiring process. The agreements are designed as a way to keep employees from using the skills and contacts they have gotten from one company and taking them to another. And, most of these companies won't hire people who don't sign the agreement.
But, after many companies have attempted to sue former employees for violating the agreement, it has become clear that most of these agreements don't have the legal power to prevent employees from accepting jobs with competitors. The truth of the matter is that employers can't legally prevent people from working in their profession. And many of these agreements contain unrealistic terms including preventing people from working with any competitor within a 50 mile radius for up to 2 years. If you live in a metro area, the 50 mile radius would rule out almost all of the companies in your industry.
So, if you are asked to sign, or have already signed a non-compete agreement, here are some things you should know:
- Check with your state – Depending on the state law, these type of agreements may not be enforceable. Most states have employee friendly laws that prohibit companies from interfering with a persons ability to work in their field.
- Don't try to take down your company – Even if you are planning to work for a competitor, in spite of having signed a non-compete agreement, don't try to undermine your current company. Be smart and don't provoke them. Don't try to take your company's secrets, client lists or recruit an entire departments. Even if your company can't enforce the agreement, don't give them the motivation to take you to court.
- If you aren't sure, just sign it – If you don't sign it, it could cost you a job. But, you should seriously consider talking to an attorney right away. Remember that signing the agreement doesn't mean that you are signing away your legal rights.
- Be sure the agreement is reasonable – All too often, employers will try to get new hires to sign agreements that cover too broad of a geographic area and place too many restrictions on the duration of the agreement and what activities it covers. But, the more outrageous they are, the less likely they are to be enforceable.
- Be prepared for a fight – Even though the agreements may not be enforceable in court, it doesn't stop the company from filing suit. So, be prepared for the fight by keeping copies of any agreements and any other information that is relevant. Most of the time though, court battles are used as a way to stop former employees from hurting the company. So, be sure that you leave your job and take the new job with as much grace as possible to avoid instigating this sort of court battle. You probably can't afford as much time and legal fees as the company can.
Have you ever had to sign a non-compete agreement? Have you run into any unreasonable ones? I would love to hear about them in the comments.
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By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer, along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.
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