My Employer Wants Me to Sign a Non-Compete. What Should I Do?

Oct 23 2024

Josh Goodbaum: Hi, Amanda.

Amanda DeMatteis: Hi, Josh. What are we gonna talk about today?

Goodbaum: I wanna ask you a question that I get all the time and I know you get all the time. It’s a simple one. “My employer gave me a non-compete. They told me I have to sign it. What should I do?”

DeMatteis: The first thing you should do, Josh, is read it. And then immediately thereafter, call an employment lawyer.

This is a contract that your employer is asking you to sign, and there are consequences if you don’t sign it. For one, you could be fired, you could be terminated, you could lose your job over this. So, you need to take it seriously. You need to understand what it is your employer is trying to restrict you from doing at the end of your employment and talk to an employment lawyer about whether or not it’s enforceable.

The enforceability of non-competes really comes down to a reasonableness standard. Is it reasonable in time? Is it reasonable in scope? Does it prohibit you from earning an income in your chosen profession? These are all things that need to be examined to have a real understanding about whether or not this instrument that your employer is asking you to sign can actually be enforced against you at the end of your employment.

I can’t tell you how many people come to us and say, “Hey, I signed this non-compete at the beginning of my employment, you know, five or so years ago. I didn’t read it, but it’s not enforceable, right?” Wrong. So many people have this idea that, whatever, they just signed this so they can get a job and it won’t impact them later on. And that just is not the case. The best time to look at these documents and be able to potentially negotiate them is before you sign them. Because once you sign it, it is an enforceable contract.

So, talk to an employment lawyer first. Get some good advice about what this means, how it’s gonna impact your career going forward, and see if you can take steps to negotiate with your employer before you even sign this non-compete to make it an agreement that is much more palatable to you if and when your employment with this particular employer ends.

Goodbaum: Great advice, Amanda. I agree 100%. I hope that’s helpful to all of you. Thank you for watching, and we’ll see you next time.

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josh goodbaum discussing whether or not an employee can refuse to a sign a non-compete

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