Legal Question in Employment Law in California
Refusal to sign more restricitve non-compete after acquisition grounds for termi
Immediately prior to my company getting acquired by another company I signed a Change of Control Severance agreement which gave me severance benefits if my employment should be terminated without my consent/for no cause within 12 months after a change of control event.
After the change of control I've been asked to sign new, more restrictive non-compete and inventions assignment language as a condition of employment with the acquiring company. If I refuse to sign the new agreement the company is saying they would consider the act 'voluntary resignation''- and hence the coc severance benefits would not be triggered.
My feeling is that they've introduced new conditions to my employment - I should be able to continue my current employment without signing this new document. I'm not resigning - they're simply terminating me for not signing a new document.
The broadest clause in the defintion of 'termination for cause'that I'm assuming they'll point to is ''a willful act by employee which constitutes misconduct and injurious the the Company''
Any thoughts?
1 Answer from Attorneys
Re: Refusal to sign more restricitve non-compete after acquisition grounds for t
In California, covenants not to compete are unenforceable. At least one court has held that an employer who terminates an employee who refuses to sign a contract that contained a covenant not to compete, violated an important public policy and therefore, wrongfully discharged the employee.
If you refuse to sign, you will probably be fired (they can call it whatever they want but if they refuse to allow you to work, they fired you) and will need to review with a lawyer your legal options.
Or, you can sign the agreement, continue to work, and if you end up leaving and go to a competitor, dare them to enforce an unenforceable agreement.
Whatever you do, you should review your contract with an experienced labor law attorney near you before making a decision.
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