Can you be fired for refusing to sign a non-compete?

Can you be fired for refusing to sign a non-compete?

An overly broad non-compete is considered a violation of public policy, thus an employee who is unwilling to sign it is not violating company policy, and is protected by state public policy. The employee cannot be terminated as an act of retaliation.

Why do companies make you sign non competes?

A non-compete agreement, or a covenant not to compete, is a contract that companies ask employees to sign to protect their corporate interests. Violations can mean facing possible litigation.

Can a company be sued for hiring someone with a non-compete?

Non Compete Agreements FAQ In fact, California law makes it unlawful for an employer to require an employee to sign a noncompete agreement. A California employee who has been forced to sign an unlawful noncompete agreement may bring suit against the employer and recover penalties and damages.

Do employers enforce non-competes?

In other words, non-compete agreements are not enforceable in California. Employees can void any non-competes that require a court outside of California to decide disputes. In other words, the company cannot enforce an employee’s non-compete agreement in a state that allows these agreements.

Do you have to sign a noncompete agreement with your employer?

Many employers ask employees to sign noncompete agreements promising they will not work for a competitor after leaving their current job. These agreements are legal in many — but not all — states. (One notable foe of the noncompete agreement is California, where such arrangements are prohibited except in connection with the sale of a business.)

What happens if an employer fails to enforce a non-compete agreement?

An employer who tries to enforce a non-compete and fails will end up paying the attorney’s fees and costs of the prevailing employee, and will sometimes be paying money damages to the employee for tortious interference with an employment relationship if they cost the employee a job.

Can a non-compete agreement be signed in Florida?

Continued employment is valid consideration for a non-compete agreement in Florida. Florida statutes presume that non-compete agreements are valid. Truth be told, most employees don’t have the will or the resources to fight them.

How often should you review a non-compete agreement?

If you want employees to be bound by non-compete agreements, the best course of action is to have an attorney prepare them, and to have them reviewed at least once a year for any changes necessary. An unenforceable non-compete is worse than useless – it is dangerous to the employer who tries to enforce it.

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