Changing Non-Competes

Quick question about Non-Compete Agreements. I work for a company that requires a non-compete agreement to be signed. There was a problem with the original agreement so a second agreement is being written up. If I refuse to sign the second agreement will I still be bound by the first non-compete?

1 answer  |  asked Nov 1, 2006 2:28 PM [EST]  |  applies to Pennsylvania

Answers (1)

Christopher Ezold
You may not be bound by either noncompete if you sign the last one after you begin working.

Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.

That being said, you may not be bound by either noncompete if you sign the last one after you begin working.

Noncompetition agreements must include legal consideration for the employee; that is, they must give the employee something. Pennsylvania courts have held that once you are employed, you have to be given something else besides 'continued employment' (such as cash, a promotion, etc.) for a noncompete to be valid.

If the first noncompete has a 'problem' that renders it unenforceable, and you sign th second noncompete, but get nothing for doing so, you may not be bound be EITHER noncompete.

If you refuse to sign, however, your employer may fire you, and you will have no legal recourse except unemployment.

To know whether either noncompete would bind you, I would need to read them both and discuss the facts of your hiring and the terms and conditions of your employment.

If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.

/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585

posted by Christopher Ezold  |  Nov 1, 2006 4:23 PM [EST]

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