Legal Question in Employment Law in New York

employee right to refuse to sign a non-compete agreement

I sell advertising for a television station and I have been employed with this broacasting company since 12/01. They have now requested my signature on a non-compete contract. Do I have the right to refuse? If I do refuse can they let me go? A colleague told me this type of contract should be revealed on hire---not after the fact. What are my rights?


Asked on 5/21/02, 8:59 pm

2 Answers from Attorneys

Steven Modica Modica & Associates

Re: employee right to refuse to sign a non-compete agreement

As a general rule, if you work in the private sector and are NOT represented by a Union, and do NOT have an individual employment contract, you are an "employee-at-will." This means that your employment can be terminated for any reason, no reason, good reason or bad reason. The major exceptions to this rule is that an employer cannot take adverse action against you because of your race, religion, sex, national origin, age, disability or marital status.

Courts are reluctant to enforce non-compete agreements. This is especially true when there is no "consideration" to support the restriction. In other words, did your employer give you something "more" when they imposed the non-compete? If not, it might not be enforceable for lack of consideration.

There are many factors that are used to determine whether a non-compete agreement is enforceable including the duration and scope of the restriction, the type of work that you performed for the company that is trying to restrict you, etc.

I recommend that you present the agreement to a qualified lawyer and provide him or her with the relevant facts so that you can truly understand how you might be restricted if you sign the non-compete. If you don't sign, and assuming you are an employee-at-will, you could be fired (legally) for refusing to sign it.

Good luck.

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Answered on 5/21/02, 10:04 pm
Harold M. Weiner Coles & Weiner, P.C.

Re: employee right to refuse to sign a non-compete agreement

I have read Steven Modica's reply and have nothing to add to it. Listen to him.

Mainly, in New York, you have the right

to quit. Absent a collective bargaining agreement, if you are a union member and your union has no collective bargaining agreement wit h your employer; or a real contract of employment ( not a letter saying

that you are hired ) signed by both parties, it is sayonara time any time the boss wants to let you go. Also any time you want to leave. That is employment at will.

Sit down with a lawyer and decide just how restrictive the scope of the non compete clause is, whether or not it is legal ( if it is over a certain area or over a certain period of time or both it may not be, under New York law) and decide how much you like your current job.

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Answered on 5/22/02, 7:43 am


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