Refusing to sign a non-compete contract with an employer

[Toneb]

California

We were given a confidentiality agreement earlier this week to sign. A lot of it stated that we can’t disclose any confidential info, training, business practices, technology, computer software, etc. which is fine with me. But in this agreement is a non-compete clause that states that “For a period of 10 years after the effective date of this agreement EMPLOYEE will not directly or indirectly engage in any business that competes with [my company].” It goes on to say that during this time period and for a year after “EMPLOYEE will not directly or indirectly engage any entity whose clients include those represented by [my company] or engage in a business that competes directly with [my company]. The EMPLOYEE agrees that this non-compete provision will not adversely affect the livelihood or business of the EMPLOYEE.”

So if I understand this correctly then I can’t work in this industry or even have any indirect dealings with our clients in future jobs for the next 10 years? I hear that non-compete clauses are not enforceable in California so can this be used against me in any way? I’m the lowest level of employee in this company and this seems excessive. We were given an updated version on Fri and told to sign and return it by the end of business Monday or he expects our resignation. Can I be fired for not signing and if so, am I eligible for unemployment?

 

[HomeGuru]

California

We were given a confidentiality agreement earlier this week to sign. A lot of it stated that we can’t disclose any confidential info, training, business practices, technology, computer software, etc. which is fine with me. But in this agreement is a non-compete clause that states that “For a period of 10 years after the effective date of this agreement EMPLOYEE will not directly or indirectly engage in any business that competes with [my company].” It goes on to say that during this time period and for a year after “EMPLOYEE will not directly or indirectly engage any entity whose clients include those represented by [my company] or engage in a business that competes directly with [my company]. The EMPLOYEE agrees that this non-compete provision will not adversely affect the livelihood or business of the EMPLOYEE.”

So if I understand this correctly then I can’t work in this industry or even have any indirect dealings with our clients in future jobs for the next 10 years? I hear that non-compete clauses are not enforceable in California so can this be used against me in any way? I’m the lowest level of employee in this company and this seems excessive. We were given an updated version on Fri and told to sign and return it by the end of business Monday or he expects our resignation. Can I be fired for not signing and if so, am I eligible for unemployment?

**A: this issue has been discussed before. CA courts have ruled that certain provisions in the non compete agreement are unenforceable, especially the 10 year term.

 

[LeeHarveyBlotto]

There's nearly no chance it would hold up in a court of law. That said, should the employer pursue it, you would be out of pocket to defend the action.

Yes, you can be fired for refusing to sign it.

 

[LdiJ]

There's nearly no chance it would hold up in a court of law. That said, should the employer pursue it, you would be out of pocket to defend the action.

Yes, you can be fired for refusing to sign it.

Don't resign though...make him fire you.

 

[Toneb]

OK, I went back and looked at some of the previous threads. Thanks for the answers. They've been a great help.

 

[justin1]

The ten year term is too much and that can leave you with no options left in your particular field. That said I would also like to add that the case cannot hold up in the court and, you can be fired as well for refusing to sign it.

 

[Zigner]

The ten year term is too much and that can leave you with no options left in your particular field. That said I would also like to add that the case cannot hold up in the court and, you can be fired as well for refusing to sign it.

Thanks for regurgitating what's already been said.

 

[HomeGuru]

The department of the redundancy department.