What Is a Non-Compete Agreement, Why Employers Require Employees to Sign a Non-Compete Agreement to Be Able to Accept a Job Offer, and Why Employees Should Never Sign a...

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By Dr. Harrison Sachs

cover image of What Is a Non-Compete Agreement, Why Employers Require Employees to Sign a Non-Compete Agreement to Be Able to Accept a Job Offer, and Why Employees Should Never Sign a Non-Compete Agreement to Be Able to Attain a Job

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This essay sheds light on what is a non-compete agreement, demystifies why employers require employees to sign a non-compete agreement to be able to accept a job offer, and expounds upon why employees should never sign a non-compete agreement to be able to attain a job. Much to the dismay of the prospective employee, it can be cumbersome to find an employee job in which the prospective employee is not required to concede to signing a non-compete agreement before commencing the employee job. Employers often require prospective employees to acquiesce to signing a non-compete agreement as a mandatory requirement before they are able to attain the employee job. Much to the consternation of the prospective employee, non-compete agreements are broad in scope and are eminently unfavorable to prospective employees. "A non-compete agreement is a legal agreement or clause in a contract wherein an employee agrees not to enter into a competition with an employer during the employment period and after the employment period is over. Non-compete agreements are signed when the relationship between employer and employee begins". A non-compete agreement does not dissolve post the employment period with the employer elapsing. A non-compete agreement can last for additional years beyond the employment period post an employee resigning from his employee job. The non-compete agreement is drafted to be highly favorable to employers. The non-compete agreement can also adversely affect a job candidate's future job prospects even for additional years beyond the employment period post an employee resigning from his employee job. Non-compete agreements "give the employer control over specific actions of the former employee even after that relationship ends. These non-competitor agreements have specific clauses stating that the employee will not only not enter into a competition with an employer during the employment period, but will also not work for a competitor after their employment is over, regardless of whether they are terminated or resign. Employees are also prevented from working for a competitor even if the new job would not involve disclosing trade secrets". When an employee signs a non-compete agreement, he is significantly winnowing down his future employee job prospect. "The terms of the non-compete agreement" can vary from non-compete agreement to non-compete agreement. "The terms of the non-compete agreement" are always unfavorable to employees. "Some of the terms of the non-compete agreement may include the length of time the employee is bound to the non-compete agreement, the geographic location, and/or market. These non-compete agreement may also be called a 'covenant not to compete' or a 'restrictive covenant.' Non-competes ensure the employee will not use information learned during employment to start a business and compete with the employer once work is over. It also ensures the employer keeps its place in the market". Employers ineffably love non-compete agreements even though they can undermine an employee's future earnings potential for a prolonged period of time. Non-compete agreements are tailored to be highly favorable to employers and highly unfavorable to employees. Signing a non-compete agreement can adversely impact an individual's livelihood since it can preempt the individual from being able to earn a liveable wage due to it severely restricting his ability to work. Non-compete agreements are so broad in scope that they can for instance prevent a person from being able to work in multiple industries. Non-compete agreements can also preclude an individual from being able to work in multiple self-employed capacities for even additional years beyond the employment period...

What Is a Non-Compete Agreement, Why Employers Require Employees to Sign a Non-Compete Agreement to Be Able to Accept a Job Offer, and Why Employees Should Never Sign a...