signing an agreement under threat of being fired

[kate brown]

If a nondisclosure agreement is signed after being told in writing by the company EVP that you would possibly be fired if you did not sign, is it still valid? Is that considered signing under duress if you thought you would be fired if you refused to sign?

State of Texas

 

[cbg]

I don't know Texas law on this matter. Check with your state DOL.

 

[JasonRT]

Dear Ms. Brown:

It is possible that the company will not have a position for you in which you are not exposed to information that must be kept confidential. This could be why they are asking you to sign the NDA and advising you that if you don't, there won't be a position for you.

Why are you so anxious to divulge your company's secrets? Don't you have any loyalty to the place that provides your paychecks?


[email protected]

 

[I AM ALWAYS LIABLE]

My response:

Dear Jason, your thoughts on this . . .

Since our writer is already employed, perhaps the agreement (under threat of being fired) would be invalid under the theory that it is a "contract of adhesion".

What do you think?

IAAL

 

[JasonRT]

Good thought IAAL -

My problems with this are:

1. Her only remedy is to have the court review the contract and remove the unfair terms. What will they deem unfair? Will the court rule that she should be allowed to disclose propriatary company information to third parties? I think not. The contract only serves to further define her responsibility to the organization and as such probably wouldn't be consider unfair.

2. The employee lives in Texas, a state in which people are employed "at will." The company may release her for any reason or no reason. Failing to accept addional job responsibilities would, in my opinion be sufficient to release her. She would probably be entitled to unemployment, but this could be far less of a worry to a company than an employee who is afraid to sign a NDA (an action which in itself raises red flags).

What do you think?


[email protected]

 

[I AM ALWAYS LIABLE]

My response:

I tend to agree with your logic. In this type of a scenario, and even though one of the contracting parties is at a disadvantage (our writer - potential loss of job), our writer would have to make a choice between the contract, or losing her job. It's going to be a lose - lose situation if she fails or refuses to sign.

Thank you, Jason. I appreciate your attention to detail.

IAAL