Must I sign my employer's noncompete agreement?

Need Professional Help? Talk to an Employment Rights Attorney.

There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please add a valid Email
Phone Number is required
Please enter a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Description is required
By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

Question

My employer is insisting that I sign a noncompete agreement, preventing me from working for competitors if I leave. Is there anything I can do to make it less onerous, or do I have to sign whatever my employer hands me?

Answer

You certainly aren't alone. 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.)

Even states that allow these agreements impose some limits on them because the legal system puts a high value on a person's right to earn a living. A noncompete agreement won't be enforced if a court find that it is unreasonable. An agreement may be held unreasonable because it:

  • lasts for too long
  • covers a geographical area that is too large
  • is too broad in the types of business it declares off limits to the employee, or
  • applies to employees who never had access to the employer's trade secrets or other valuable information in the first place. (In this situation, there's no compelling reason to allow the employer to prevent the employee from working for a competitor.)

If you're asked to sign a noncompete agreement, your best first step may be to negotiate the finer print with your employer. Here are a few pointers for crafting your arguments.

  • If your employer asks you to sign a noncompete when you're promoted to a new position, it's reasonable to ask for money to compensate you for the rights you are giving up. Keep in mind, though, that this will almost certainly prevent you from later claiming that the clause should not be enforced against you. Because you got something valuable for signing the agreement, you probably won't be able to get out of it later.
  • If presented with a noncompete clause, demand that it take effect only if you leave the job voluntarily. Otherwise, the clause could limit your employment opportunities if you are fired or laid off.
  • Ask for the prohibited competition to be clearly identified and limited. Many employers fear competition with only one or two specific companies and will readily name their names in your agreement.
Get Professional Help
Talk to an Employment Rights attorney.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please add a valid Email
Phone Number is required
Please enter a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Description is required
By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you