Non-compete agreements have become a major issue for employees in New Jersey. These agreements prevent employees from taking similar jobs or starting competing businesses after leaving their current employer. Companies say that these contracts protect their trade secrets and sensitive information, but many employees find themselves facing unfair restrictions.
The Federal Trade Commission (FTC) has introduced new rules that make most non-compete agreements unenforceable. However, some agreements may still be valid. All of this can be confusing for employees. Being unaware of their rights, many workers are forced to sign contracts that are unreasonable in terms of scope, duration, or location.
Many employers also present their employees with a “take it or leave it” attitude, which puts people in a helpless position. If you find yourself in a similar situation, you can get help. Get in touch with employment lawyer Ravi Sattiraju today.
What makes a non-compete agreement unfair?
- Excessive restrictions.
A non compete agreement would be unfair if it has excessive restrictions. This may include a very long duration or a very big area where the employee can not work.
For example, if an agreement prevents someone from working in their field for five years or across the entire country, it would be unfair because it may limit your ability to earn.
- Unclear language or overly broad terms.
If the agreement has unclear language, it is unfair. If the contract has some terms that are difficult to understand, the employee may not know what they are agreeing to. This can lead to confusion and even legal disputes later on.
- Lack of consideration or benefit for the employee.
If the employee does not get anything in return for signing the contract, the agreement can be unfair. The employees must get some benefits, whether in the form of money or other benefits.
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Steps to take if you are pressured to sign
- Do not sign immediately.
If your employer is pressuring you to sign a non-compete agreement, do not sign it immediately. It is very important to take your time and read the document carefully.
If you rush into signing the agreement, it can even restrict your career options. Make sure you do not sign under pressure and stay calm.
- Request a copy of the agreement.
You should also request a copy of the agreement from your employer in writing. Having a written document is important. It helps you to fully review the terms and seek advice from others before signing. It also allows you some time to match.
It also gives you time to match the written terms with what the employer verbally told you. Sometimes, what is written in the contract may be different from what was previously told to you.
- Seek legal advice.
It is also very important to seek legal advice before signing. An employment lawyer will help you understand rights and determine if the agreement is fair. They can also help you point out any terms that are unreasonable or too restrictive.
- Negotiate the terms.
If you find that some terms are not acceptable, do not hesitate to negotiate them. For example, if the duration is longer, you can request the employer to shorten it. You can also ask for compensation for agreeing to the terms.
- Understand your leverage.
You should also understand your leverage in the situation. Before signing the contract, think about how valuable you are to the company and whether you will suffer any loss if you refuse to sign. If the agreement seems unfair, you should explore other job options that do not have such restrictive terms.
Don’t sign that non-compete agreement!
If you believe that your employer is presenting you with an unfair non-compete agreement, an attorney may be able to help. Consult with an employment lawyer today!
