Noncompete

by KYW's Amy Feldman

When a high tech firm hired the former employee of one of its competitors, the old company reminded their former employee of a little thing called a noncompete—the agreement he signed when he started working for the old company, agreeing not to work for its competitors after he left.  He likely thought what most people think when they are reminded of a noncompete:  you were serious about that?  Uh yeah—they sued him and a judge ruled that he had to quit his new job until the noncompete period expired. 

More and more employees are handed noncompetes and told that if they want the job, they have to sign them.  Is that true?  And is it enforceable?  Surprisingly yes and yes.

Assuming that you want to take the job, read the agreement carefully since you will be held to it--and negotiate its terms.  First, ask that it be changed so it’s only enforceable if you quit, not if you are let go.  Second, ask to limit it only to certain clients or certain competitors.  Remember that your best time to negotiate is when they want you for the job, not when you want to take another job and they have the power to stand in your way.