Non-compete demanded signed or terminated-after signing benefits and salary are cut.

After ten years of employment my employer demanded that I sign a non-compete contract or I would be terminated in one week. Two months after signing the non-compete employees were forced to pay monthly health insurance premiums. (roughly $4,000.00 per year) Six months later my salary was cut by $5,000.00 per year. Is this non-compete valid? I'am currently considering a positon with a direct competitor.

1 answer  |  asked Apr 21, 2003 8:30 PM [EST]  |  applies to Wisconsin

Answers (1)

Sally Stix
Arguably not

First, the courts scrutinize non-competes because they inhibit the "free market."
I think there is a strong argument against the enforceability of the non-compete in this situation. It was signed by the employee based on the continuation of current benefits and salary. If the employer gave no notice of the changes prior to requiring you to sign the non-compete, a court might well find the employer had you sign under false pretenses and void the non-compete. Of course, the employer would have to try to enforce the non-compete for the issue to arise.

posted by Sally Stix  |  Apr 22, 2003 11:05 AM [EST]

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