Negotiating A Non Compete Agreement

Each state has its own non-competition standards. For specific information about your state`s competition bans and current legislation, please contact a lawyer in your country. At the federal level, the White House published a report in 2016 on competition bans in the employment relationship, which states that they can “impose considerable costs on workers, consumers and the economy in general. Employers who sign non-compete contracts are motivated by a desire to limit turnover and protect proprietary information such as customer lists. After deploying considerable resources to train new employees, companies are reluctant to pass on their new skills, knowledge and experience to their competitors. Even if you are not in the job market right now, you should pay close attention to the increasing pressure on employees to sign competition bans. Your current employer may be facing you with a new non-compete clause if you receive a raise or promotion. Or you are asked to sign one to get severance pay if you are fired. Don`t sign or accept immediately – although chances are you`ll be tempted. Ask for a copy of the agreement that you can check while you think about the job offer and your start date. You`ll probably feel a bit of pressure, but try to resist it. If you want to gain more influence from your next job negotiation, non-compete agreements, which may very well be included in your employment contract, could be an opportunity to achieve the win-win win situation you want for both parties. Employers often have good reasons to force new employees to commit to imposing non-compete rules.

Before you sign on the dot line, make sure you understand this justification and have negotiated a treaty that balances the interests of both parties. It`s not enough that your employer simply doesn`t want you to bring your skills and competencies to a competitor. There must be a good reason for non-competition. For example, if the employer has introduced you to all of their best customers, they may have a legitimate interest in preventing you from going to a competitor and attracting those customers. The goodwill developed in customer relations gives the employer a competitive advantage. You might want to prevent yourself from getting capital out of it, so they are entitled to protection. Sometimes. Here too, depending on the facts of each case, the employees managed to assert rights for “unlawful interference in commercial relations”. This right applies to cases where an employer has cost the worker a job for attempting to impose a legally unenforceable non-competition clause.