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Ciaran M
Employment Law - working for a Competitor?
After handing in my notice recently, my employer gave me a form to sign which states that I agree to not work for a competitor company for two years after leaving (as per the terms of my contract which I have signed).

Would be grateful for advice regarding my position here:
1) Must I sign this form, and if I refuse, what may be the consequences?
2) Was my contract legal in the first place i.e. is it legal to include a clause which prevents employees from working for a competitor AFTER leaving this company?

Thanks for any advice.



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Wild Dog
Rating
Each state has different laws so you will want to consult with someone in your state; if it's really important to you'll want to consult with a lawer.

I wouldn't sign the non-compete after you already quit unless the company had something in writing listing the consequences. If there's nothing in writing then the worst I think they can legally do to you is mark you down as non-rehirable. It is legal in most states for companies to have a non-compete clause in their contract but they may have had to have you sign the form and didn't so now there trying to sneak it in on you.

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Gotcha
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I don't know the answer but am very interested in seeing the answers of others, as my son is in a similar position.

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bigmatlem
I don't know where you live but in Arizona they (your employer) can't bar you from working elsewhere after you quit. Except that only applies to broadcast radio/tv personalities.

1) If you don't sign the form you will probably be canned on this spot and who cares. You can try to ask them to remove that. But I doubt they will.
2) They shouldn't prevent you from earning a living after you leave the company.

I looked and looked in the Title29 of the US Code and looked in federal appeals dockets and couldn't find anything that would bar them from enforcing it if you sign it.

Talk to your local EEOC office and see if they have rules regarding this and also your state labor agency.

If there aren't rules regarding this then I think we need to get on our high horses and get a law passed asap. Because thats nuts.

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KJ
Rating
In the UK, as many others have said, if not working for a competitor is already stated in your terms of employment, and you have signed it, then there is no reason to get you to sign anything else, other than that there is a loophole with their previous wording, or the timescale isn't long enough.

I personally would refuse to sign the new document.

Additionally, whilst the terms of employment you have already signed, which include not working for any competitor, are legal, I don't know many companies that would go to the lengths of taking an ex-employee to court over it, as it is a costly process and there is always a chance that it can be seen as an unfair term. i.e. If you work for sales in a specialist company (for instance wheelchairs), then that is your specialist area and to prevent you from working for a competitor basically prevents you from working in your chosen career - and that could be seen as an infringement of your human rights I believe.

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jeanimus
Yes its legal but I cant remember the term. The reason is that your firm spent money training you, so they dont want you going over to the competition and taking business with you. It happens quite a bit when haidressers and beauticians and so on are leaving to set up on their own.

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bennachie1
Rating
Delay handing back the form - just to see what if anything will be said.

The legality of the clause is highly questionable.
and may depend on such things as what market sensitive info you were/are party to.

I would suggest that you seek advice re this.
It may after all be a standard contract as such with no account taken of your actual job.

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susiemd
My guess is that your original contract has a loophole and that is why they want you to sign a new agreement. Personally, I would not sign it!

Consequences: They may tempt you with money, i.e. offer money in exchange for your signature. Personally, I wouldn't do it.

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gail
You have handed in your notice, therefore terminated your employment contract with this company.
Was this a stated requirement on your original contract ? if it was and you signed it then it is legal. If it wasn't then don;t worry they can't force you to sign anything as your leaving.

Sounds to me like there is something on your original contract that allows you to get out of this requirement which is why they are asking you to sign this paticular reference again.
Check your original contract word for word and see if there is something on there that will give you a get out clause.
But you do not have to sign anything now that you don't agree with.

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SeaEff
Rating
I believe it is legal but can be got out of with the help of a solicitor/lawyer.
Time scale can be contested as can distance of new company from old.

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vicseo
Rating
In California, any and all non-competition clause/agreements are NOT enforceable in any legal forum.

Good luck!

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www.scapegoatz.com
Unless you all ready signed a contract before, I do not think they can make you sign one once you quit.

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irish_lad_921
Rating
1) to work there you will have to sighn that form, if you don't they will not hire you because its a liability. Mainly because if you go and get fired or leav this position knowing how the company works and what they are up to next would give a competator a better edge on the next company. Its mainly to keep there company secerit as much as possible so that your not working for the new comapny and giveing them what your old company was doing.

2) Yes it is legal the only way i can think of that you can get out of it is if you get them to sighn off saying that you are allowed to work for them. but only reason they would do that is if you honestly where lower rung of the comapny and didn't know ditty what was the big plans heppening there.

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claire s
Rating
Your contract is legal, most companies prevent you from working for a competitor for a specific period of time after leaving. Are you in some sort of selling role? If so, this is to prevent you from contacting previous clients and 'stealing' business.

As you have already signed your contract you shouldn't need to sign another form as your contract is binding and you could be taken to court if you do work for a competitor (although, in practice, few companies would do this) - personally, i wouldn't take the risk

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abdyeshua
If this was a condition of your preemployment, then you are probably stuck. That's an enforcable contract.

If this is the first time they spring this on you, then don't sign it.

Had one of these pulled on me (with other stipulations) when I was fired for not relocating when they told me to. The penalty if I didn't sign was that they would not pay my severance (3 months salary).

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Judy
I'd hand it back to him unsigned, or ignore it. If they wanted a non-compete agreement, they should have had you sign it when you started work with them, or sometime during your employment, not now at the end. No you dont have to sign it.

If you had an employment contract that had a non-compete provision, then that part is most likely legal.

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michr
Rating
1. you have already given your notice you do not have to sign anything else
2. non-compete clauses are not enforceable by law in many states and where they are legal they are next to impossible to enforce unless the job involves recognized trade secrets.

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