Gaining new employment may come with a high level of excitement. When negotiating your new position’s terms, you may discover that the company wants you to sign a non-compete agreement.
Absent prior knowledge, you may sign something that restricts your movements in the future. To know if you want a job bad enough to sign a non-compete, you should get some insight into what it can and cannot do.
What does a non-compete agreement mean?
Some jobs require a particular level of exposure to company practices and procedures. The business may not want this information to become readily available to competitors. To try and stop employees from taking this insight to a competitor, the company may require a non-compete agreement. If an employer asks you to sign one, it may limit who you can work for should you leave. Standard non-compete agreements place a distance and timeframe by which you must abide should you leave. For instance, you may not work in the same profession within a 100-mile radius for five years.
Is the document enforceable?
A non-compete signed before you begin employment becomes legally binding. If you choose to quit and work in a manner that violates the terms set out in the document, the company may file a lawsuit against you. The court may impose penalties in the form of money and further restrictions on future employment activities. The repercussions for violating a non-compete usually appear in the document itself.
You may want to consult with a legal representative once a company desires you to sign a non-compete. The insight provided by a knowledgeable representative can help you get a better result.