Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

What to do if you're asked to sign a non-compete agreement

What to do if you're asked to sign a non-compete agreement

Tens of millions of US workers have signed non-compete agreements - knowingly or not - with their employers - and many of them may not even realize it.

Non-competes restrict where and when you can work after leaving your current job. Such agreements prohibit an employee from working for a competitor or from starting her own competing business within a geographical area for a certain period of time after leaving her job - usually between six months and two years.

In 2017, an estimated 28% to 47% of private sector workers were subject to non-compete agreements, according to the Economic Policy Institute.

Non-competes are typically used to keep highly paid executives from jumping ship and taking the company's secrets with them. They also are commonly used to prevent salespeople and others who work directly with customers or clients from taking those relationships with them when they leave, said employment lawyer Laurent Drogin, a founding partner with Tarter Krinsky & Drogin.

But increasingly over the years, even low wage workers have been asked to sign these agreements. The sandwich chain Jimmy John's, for instance, settled lawsuits brought by Illinois and New York in 2016 that alleged the chain required all employees, including sandwich makers and delivery drivers, to sign two-year non-competes. More recently, WeWork settled suits in the same two states that alleged the company made all employees, even cleaners and baristas, sign broad non-competes.

"Often the reason employers want them is a retention device. [It's] prophylactic. If people think they have an agreement that binds them and they may get sued, if they can't afford an attorney and need the job, they'll sign now and worry about it later. It's a scare tactic," said Drogin.

Many economists say such agreements suppress wages, reduce worker mobility and are anti-competitive.

Two bills were introduced this year in the Senate to ban non-competes for low-wage workers. Meanwhile, several states have passed legislation restricting how broad the terms may be and, in some cases, also have banned employers from using them on low-wage employees.


What to do if you're asked to sign a non-compete

At some point, you might be asked to sign a non-compete.

You may be informed about it when you're applying for a job, in an offer letter, soon after you start a new position, or after working for your employer for years.

Or a company may include a non-compete clause in something you must sign off on, such as the employee handbook, a bonus agreement, a confidentiality agreement or a severance agreement, said attorney Donna Ballman, who runs an employee advocacy law firm in Fort Lauderdale, Florida.


Ask questions and check your state's laws

Don't sign anything without first knowing what's in it. "Read everything your employer puts in front of you," Ballman advised.
If you see non-compete provisions, ask why you need to sign the agreement and what you're getting out of the deal.

You should be offered something in exchange for legally agreeing to restrict your future professional options and earning potential, such as extra pay, a promotion, special training for career advancement or a change in status so that you're no longer considered an "at-will" employee.

But the something "extra" you get may simply be keeping your job. "In Florida and in many states, an employer can say 'sign or you'll be fired,'" Ballman said.

In some states, though, such as Pennsylvania and Massachusetts, employers must provide you with something more than merely being able to keep your job, said Sidney Gold, an employee-side employment lawyer in Philadelphia.


Get outside advice

If possible, hire an employment lawyer who represents employees to look over the agreement before you sign anything.
If that's too expensive and other people in a similar position at the company are being asked to sign the same agreement, you might consider pooling money to hire a lawyer to review the agreement for the group.


Try negotiating terms

See if your employer is willing to negotiate any elements of the non-compete - e.g., shortening its duration or narrowing the geographic area to which it applies or more narrowly defining what the company means by "competitor" or "customer."


Don't assume your employer won't come after you

The fear with a non-compete is that if you violate it, the company will sue you.

No one can guarantee they won't. But employers don't always go to court over non-competes. "They look at it on a case-by-case basis," Gold said.

He said they're likely to pursue litigation, for instance, if you take the client list and start your own business.

If you go work for an established competitor, your former company may initially just send a cease-and-desist letter to your new employer, which in some instances could result in your being fired from your new job.


How to reduce the chance of a lawsuit

Before accepting a job with a competitor, send an email to whomever makes decisions on non-competes - it might be HR or someone else - alerting them to the offer and explaining why you believe it would not violate your non-compete, Ballman suggested.

"Then say, 'Unless I hear from you within 72 hours, I'll assume you agree and I will accept the position.' Send the email with a request for delivery and read receipts," advised Ballman.

You'll get one of three responses, she noted. The first is "No, we'll sue," in which case call a lawyer. The second is, "No we don't care, go ahead." And the third is, "We don't want to lose you. What can we do to get you to stay?"

If you don't get any response, Ballman added, send another email saying you assume they agree so you plan to give notice in two days. That gives them one more shot to get back to you. "Is that a total defense in court? No, but lack of good faith in enforcement is a defense. And you've shown you did everything [to give them an opportunity to respond]."

Whatever you do, Gold stressed, don't accept a job with a competitor clandestinely and hope for the best, because courts generally don't look kindly on deception. "Transparency solves a lot of problems," he said.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×