"No Compete Agreement" - Am I being unreasonable?

[Warik]

I've already made my decision, and nothing will change it, but I'm curious what others think.

I've been working at this company for 6 years. I was the first employee they hired. It was a small mom & pop that thanks to me grew to 30+ employees. Poor financial planning by the owners has put us into real bad shape and half the staff quit and/or were laid off. Three of them have opened up their own small business in competition with us.

Today the owner comes and hands everyone No Compete Agreements and says we must all sign them. Basically says that I can't work in the same field for 2 years... even if they terminate me. I don't plan on working in the same field anyway, but I also don't plan on being strongarmed into giving up my rights.

I said no.

I suspect tomorrow I'll get the ultimatum. I'm indispensible, whether he realizes it or not.

What's your play? Am I being an unreasonable ass, or is he being ridiculous considering that he's on the brink of losing all of his employees and going out of business?

[andyfox]

In some states, no compete agreements don't hold up in court, as they effectively prevent somebody from making a living. If you do sign it, you should get something (i.e. $) in return. But I guess, from your post, that $ are in short supply. Certainly show it to your attorney and get his advice.

[James Boston]

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In some states, no compete agreements don't hold up in court, as they effectively prevent somebody from making a living.

[/ QUOTE ]

Alabame is a "right to work state," and non-competes don't generally hold up. However, if you sign one, and a potential employer finds out, they might be reluctant to hire you because your current employer can still sue and the new employer would have to deal with it. I've worked in radio for nearly 7 years, and these are industry standard. What field are you in?

[OtisTheMarsupial]

[ QUOTE ]
In some states, no compete agreements don't hold up in court, as they effectively prevent somebody from making a living. If you do sign it, you should get something (i.e. $) in return. But I guess, from your post, that $ are in short supply. Certainly show it to your attorney and get her advice.

[/ QUOTE ]

That's what I was going to say.

Practically speaking though, a good move is to stall... act busy when they come by with something to sign, say something about looking it over and have to get back to work, set it on desk, don't sign, but don't make a snap decision either. I mean, don't tell him you won't sign it, just don't sign it. Or bargain for higher pay, more vacation time, stock, whatever...

And, even in the states where non-compete contracts are legal, they can't be unreasonable and 2 years argued by the right lawyer is unreasonable IMHO.

[RunDownHouse]

[ QUOTE ]
IMHLO.

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[cdxx]

actually, it won't hold up federally, not just some states. it falls into unfair and unenforcable contracts category. my gf went through this last year at her 20 person company. half the people didn't sign it. the owners were forced to give it up.

[ThaSaltCracka]

I say [censored] THEM!!! Censored word is in caps for emphasism.

[MelchyBeau]

CEOs and high execs usually have to sign these. They do however, get some sort of payment in return.

Like Andy said, check the local laws. Some rights you can't sign away.


EDIT: See what he thinks about an NDA.

Melch

[pearljam]

Make the correct play. Sighn the paper and move on.

[stabn]

[ QUOTE ]
Make the correct play. Sighn the paper and move on.

[/ QUOTE ]

dumb