Legal Question in Business Law in Massachusetts

Can an a long term employer force me to sing a non-competition agreement?

I've been working for an online game developer for several years. After a change in management, they are forcing all employees who have already signed an NDA, to sign a Non-Competition Agreement, in order to receive thier annual raise.

In this agreement, it states, that I would not be allowed to work for another ''Online Software Developement'' company for several years, and within 200 miles of the current location of my company.

Is this legal? I've heard of these agreements prohibiting the poaching of other employees after I might leave to work somewhere else, but this is new and I have problems with it.

My career is in a very specific job field and I have acquired a specific skill set over a long time. If I signed this agreement, I would have to work at McDonalds, or be forced to uproot my family and move far away.

I am already considering terminating my employment, which is another concern.

Isn't my legal promise that I will not share sensitive information even after I depart, enough?


Asked on 4/30/08, 11:23 pm

4 Answers from Attorneys

Thomas Abdow Abdow Law

Re: Can an a long term employer force me to sing a non-competition agreement?

Your question is well presented. However, it would take much time to address, as it involves many complex legal and factual issues. You do have several remedies, alternatives, and possible outcomes. As for your ending your employment, the complete facts surrounding your employment relationship need to be further analyzed. How long did the new management give for you to decide whether to sign? Did they state how they decided to connect the contract execution with an annual raise in pay and why? These are just a couple of the literally dozens of questions that need to be fully answered before any good advice may be given. You should contact legal counsel, retain them, and seek their advice and help immediately.

Respectfully,

Thomas R. Abdow, J.D.

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Answered on 5/01/08, 12:09 am
Thomas Abdow Abdow Law

Re: Can an a long term employer force me to sing a non-competition agreement?

The enforceability of such non-competition agreements can vary widely depending on the terms of the agreement, its effect on the person signing it, the circumstances and terms and conditions of employment and even consideration for the agreement itself. Whether appropriate consideration is given, including remuneration, job guarantees, even "golden parachutes" to more valuable employees; these can all be incentives to signing and to finding these contracts enforceable. Also, the duration, range and scope of such agreements can be deemed reasonable or not, again depending on the circumstances. Sometimes courts look to the nature and business acumen of those signing such agreements. If you are particularly talented in the area and could market your skills to a more agreeable employer, now might be the time. This is ultimately a value judgment that only you can make and you must be willing to take responsibility for the outcome. You should contact and retain counsel now to help protect your interests.

Atty. Abdow

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Answered on 5/01/08, 12:24 am
Herbert Cooper Law Offices of Jameson & Cooper

Re: Can an a long term employer force me to sing a non-competition agreement?

As the other attorney noted, this is something which requires more information than you should post on an online forum, and which you should really review with an attorney.

There are a wide variety of factors which will determine whether, and to what extent, a noncompetition agreement will be enforceable. For example, a three year duration might be found unenforceable, while a six month or one year duration might pass muster. The subject matter scope will also be an issue, along with other factors too numerous to mention in a brief posting.

There are a bunch of related issues which might have bearing on your specific situation, notwithstanding that they are not directly connected to the contract.

In sum, before you sign, you are encouraged to seek legal counsel (this forum is not legal counsel- it is impossible to go into all the necessary, and confidential, details).

Please feel free to contact me if you would like to set up an appointment.

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Answered on 5/01/08, 9:12 am

Re: Can an a long term employer force me to sing a non-competition agreement?

A non-competition agreement signed long after employment is not enforceable as a general rule unless you are compensated directly for it or it is a condition of being given a promotion such as from software designer to manager of software design or group leader in MA. It also cannot be designed to deprive you of the ability to work in your general employment area. Duration beyond 2 years is difficult to justify in MA. The 200 miles is a stretch but may be enforceable. Also, they cannot stop you from desinging any games only those that would reasonably construed as being competitive. For instance, if you are designing games for x-box, but go to work for a company that designs games for the ipod, those I would think would not be competitive.

Without reviewing the agreement and knowing more about your work, I cannot tell you if as worded the non-compete would be deemed enforceable. If you refuse and they discharge you, you may have grounds for a wrongful discharge.

If you have additional questions, please feel free to contact me.

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Answered on 5/01/08, 9:56 am


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