Can I be fired for refusing to sign a non-compete?

A non-compete prohibits an employee from engaging in a business that competes with his/her current employer’s business. While an employer cannot require you to sign a non-compete, they may terminate, or choose not to hire you if you refuse to sign.

Do you have to sign a non-compete agreement if you get fired?

When you get a new job, your employer might require you to sign a non-compete agreement. This limits your options for employment after you leave your job. If you are fired, your agreement could still limit what you can do.

What do you need to know about a non compete contract?

A “covenant not to compete” (CNC), or non-compete contract, is governed by state rather than federal law, and the general term covers three aspects: Traditional non-competes prohibit the employee from joining competing business (es) identified either by name or description, during a specified period of time and within a defined geographical area.

When to consult an attorney for a non-compete agreement?

Another time to consult an attorney: If you’re asked to sign a non-compete as a condition of getting severance when you’re being terminated. In fact, it’s useful to get legal advice before signing anything during a layoff or termination.

Why are non competes unenforceable in Illinois?

In 2017, Illinois enacted a law banning non-competes for low income workers, typically those earning less than $13 per hour 2. Even in states where non-competes are not banned, they are often considered unenforceable. From a purely ethical perspective, they limit one of the most basic premises of capitalism: the freedom to chose who one works for.

Do you have to sign a non compete agreement if you are fired?

But many employees will sign non-competes assuming they will not be enforceable. Many employees think that, just because an employer forced them to sign the agreement or be fired, that they are not bound by a non-compete agreement. That’s just not true.

When is it unreasonable to sign a noncompete agreement?

An agreement may be held unreasonable because it: applies to employees who never had access to the employer’s trade secrets or other valuable information in the first place. (In this situation, there’s no compelling reason to allow the employer to prevent the employee from working for a competitor.)

What happens if a non-compete agreement is found unenforceable?

The employee who is willing to fight will sue the former employer for tortious interference with that employment relationship, and if the non-compete is held to be unenforceable, they will win, costing the former employer not only attorneys fees and costs, but possibly thousands in damages in the form of lost wages and non-pecuniary damages.

Can a non-compete agreement be signed in Florida?

Continued employment is valid consideration for a non-compete agreement in Florida. Florida statutes presume that non-compete agreements are valid. Truth be told, most employees don’t have the will or the resources to fight them.