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Employee Rights and Information Center
A non-compete agreement is a contract between an employee and employer. 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. Courts generally do not approve of non-compete agreements. In disputes over non-compete agreements, courts consider certain factors to decide if the agreement is reasonable. If you find yourself negotiating a non-compete agreement consider limiting the agreement to only what is necessary to protect the employer and ask for a severance payment in the event that you are terminated. Learn more about how a non-compete agreement might affect you below.
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