Non-compete Agreement

I live in the State of Florida and work for a company in Colorado. The company is "Letting me go" and notifying all my business relationships in the auto & financial services that I have moved on to bigger and better things. I have agreed to leave the company, that does third party indirect lending for credit unions and auto dealers, in that they will pay me until the end of December 2001 and pay me my PTO (vacation time). They agreed to do so. Nothing in writing. The company is requiring me to submit my expenses and return their computer equipment, which is not a big deal. They are, however, requiring me to sign a noncompetition and confidentiality agreement before I can get my last paycheck and expenses. I feel that this is not right. Can they do this?

It is a little late for your employer to now try to have you sign a non-compete agreement. Before hiring you, they should have made you sign it . Additionally, the courts take a stern view of such agreements. Depending upon the specifics of the proposed con-compete agreement, it might not be enforceable.

It would be illegal for them to withhold your pay and expenses (only what you already earned). However, they can condition any additional benefits (e.g. pay for the balance of December not worked) on your executing the non-compete agreement.

You should schedule a formal consultation with a lawyer. A good means of obtaining an attorney referral is by contacting your State's bar association or your local county bar association. They probably have a web site and charge a nominal fee for the referral. Most attorneys either provide a free initial consultation, or charge a nominal fee.

Good Luck, Elliot Jay Goldstein

The above information is provided as a courtesy, without any consideration and without knowledge of the specific facts. Do not rely on this information. Seek a formal consultation with an attorney.