Legal Question in Employment Law in Georgia
Employer wants me to sign non compete agreement
I've worked for this company for 5 yrs and they are now wanting me to sign a non compete that I feel severly limits my rights. To get our yearly bonus which is based on performance, they are forcing us to sign this document. Basically, it states that we cannot contact a client who we've talked to within the past YEAR, we cannot recruit other employees away (understandable).
Another section states that upon termination, I will attend an exit interview and reaffirm these obligations and provide information regarding my new employer so that they may send them this information.
Also, it states that if I breach this agreement, the company would suffer irreperable harm, it would be difficulat to determine damages, and money damages alone would not be an adequate remedy for the injuries suffered by the company. It goes on to say that if the company seeks injunctive relief to enforce this agreement, I will waive and will not 1. assert any defense that the company has an adequate remedy at law with respect to the breach 2. require that the company submit proof of the economic value or Trade Secret or Confidential Information, or 3. require the company to post a bond of any other security.
There is more but is this legal?
2 Answers from Attorneys
Re: Employer wants me to sign non compete agreement
There is nothing illegal about your employment agreement; however, there is a strong possibility that the non-compete would be deemed unenforceable fo they tried to sue you for its breach. Whether a non-compete is enforceable depends on 3 factors - 1) time limit, 2) scope, and 3) geographical limitation.
Re: Employer wants me to sign non compete agreement
Yes, it is legal to require you to sign a non-compete, even if you have already worked there 5 years. However, I have never seen a non-compete that requires an employee to waive the claims as you have set forth (i.e. will not require the employer to prove economic value of confidential information, etc). That may not be permissible.