Legal Question in Business Law in New York

Non-compete agreement

Good Morning:

I have been with my employer for nearly three years. Yesterday he dropped off at my desk a Non-Compete Agreement and said that I had to sign this. Looks like my employment is contingent on this document, but I really do not want to sign it. There is no time period for the non-compete, but it states that I cannot work for any other company in my field for 2 years, and if I do I owe my company $50,000. After changing careers into the one I currently am in, I cannot afford to sign this should they decide to ''fire'' me for any reason. Is this legal, or more importantly- if it is, should I sign it? There really is no protection in it for me, but I feel I am being strongarmed into this. Any help would be beneficial.

Thanks-

Mike


Asked on 1/13/06, 9:31 am

5 Answers from Attorneys

Stephen Loeb Law Office of Stephen R. Loeb

Re: Non-compete agreement

While I agree that the penalty sounds overly broad and most likely unenforceable that does not change the fact that should the non-compete be signed, you would most likely be looking at the necessity of ligiation to enforce your rights, which can be costly and cannot guarantee success. Assuming other prospects in your field exist, I would strongly recommend against signing the agreement.

Should you like to discuss this or any other legal matter, you can e-mail me for more information about low cost face-to-face, on-line, or a telephone consultation with a lawyer in our office.

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Answered on 1/16/06, 10:46 am
Bunji Fromartz Fromartz Law Offices

Re: Non-compete agreement - unemployment

I agree with the others. The non-compete will likely be unenforceable without giving you some kind of consideration in return for signing. Again though litigatoin costs and attorneys fees, in general, are not recovereable.

If you do refuse to sign it and are fired you will be able to get unemployment insurance, a small concern I am sure. You will have to state that the non-compete was NOT a term of the original employment. That the employer changed the terms of the employment by demanding the non-compete and fired you when you refused.

Good Luck.

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Answered on 1/23/06, 5:06 pm
Peter Moulinos Moulinos & Associates LLC

Re: Non-compete agreement

If you an at will employee, you could be terminated for any reason. You should however have an attorney review the non-compete agreement as courts have ruled some of those agreements unenforceable.

Feel free to contact me if you have any further questions.

Kind regards,

Peter Moulinos

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Answered on 1/13/06, 9:50 am
Meyer Silber The Silber Law Firm, LLC

Re: Non-compete agreement

This is happening more and more. A non-compete is enforceable so long as it is narrowly drafted. What is deemed narrow is decided on a case-by-case basis. That he is forcing you to accept it with no compensation works to your benefit.

Please let me know if you need any further assistance.

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Answered on 1/13/06, 12:37 pm
Robert DiPaolo The Fidelis Group, LLC

Re: Non-compete agreement

I agree with what both Peter Moulinos and Meyer Silber have written, but would add that a two year non-compete with the penalty clause you describe, which does not terminate upon your termination without cause, or for which you are not provided a severance package would unlikely be enforceable in the state of New York. I would however, as has been suggested, have it reviewed. Please feel free to contact The Fidelis Law Group if you would like to discuss this further. [email protected]

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Answered on 1/14/06, 4:28 pm


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