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  1. #1

    Default Non-Compete After 3 Years of Employment

    My question involves employment and labor law for the state of: North Carolina

    I have worked for my company (HQ not in NC) for three years without a non-compete clause and do not have a written contract to work for my company. The owner has now asked all employees to sign a new non-compete and confidentiality agreement.

    I have a BIG issue with being asked to sign this agreement having handled confidential documents for years and providing no reason to the owner that my loyalty is exclusive to his company. I have no desire to go elsewhere and my work has been exemplary.

    Specifically the non-compete states:

    Recipient will not use this confidential information to enter in competition with Discloser and will not go into the same business as Discloser for a period of one year from the date employment with Discloser is terminated, regardless of the reason of termination. Recipient will not be employed by or serve as a consultant or advisor for any company in the business of providing services for one year from the date that employment with the Disclosure is terminated.

    I have been told that NC is a "right to work" state and non-competes are not easily enforceable, especially if there are unrealistic geographical or time limitations. Since there are not geographical boundaries, I can't move to another location should I be let go and would be forced into another field of work if my employer chooses to terminate my employment.

    Since there is no upside to me signing this document my questions are:

    1. What are the consequences if I don't sign the document? Can I be fired?

    2. If my work has been exemplary and I don't have a contract, and I am fired do I have a case against my employer?

    3. My wife works for the company too and if I am let go, I seriously doubt they will keep her around (she works for me). Would there be a case for wrongful termination against her?

    4. If I do decide to sign, am I entitled to additional compensation?


    Thank you for your comments.

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
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    24,521

    Default Re: Non-Compete After 3 Years of Employment

    1.) Yes.

    2.) No.

    3.) No.

    4.) No.

    I'm not sure where so many people get the idea that if a non-compete is not signed at hire the employer is forever barred from requiring one, but there is no truth in that myth. Whether any given non-compete is enforceable depends on the exact wording of the exact contract and only an attorney from your state who has read it in full can say. But enforceable or not, it is not illegal of the employer to require one.

    North Carolina, like every other state in the US except Montana and even including Montana in some circumstances, is an at-will state. (Right to work means you cannot be forced to join a union to get work - it has nothing to do with this situation.) You can be fired for any reason not specifically prohibited by law. No law prohibits the employer from firing you because you refuse to sign a non-compete. Likewise, no law prohibits your employer from firing your wife because it would cause something of a conflict of interest to keep her on after you were fired. (BTDT.) Therefore, neither of you would have a wrongful term case, regardless of how exemplary an employee either of you had been.

    Severance is not required by law in 47 out of 50 states, and is not required in these circumstances in the other three.

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