Hello. I was offered a new job as a contractor on a military base. Upon reviewing the contract the company sent to me, I noticed a clause which states I would not be able to accept another job on the base for up to 12 months after my last date of employment with the company. Also, if I choose to accept another position, that I would have to pay the company $25,000. Is this legal?
1 Answer from Attorneys
Yes, this is called a non compete clause, and they are legal for the most part. The point of the non compete is to prevent the employee from learning trade secrets or establishing relationships with customers and then competing. You can have the agreement looked at by an employment attorney, but non compete clauses are legal if they are reasonable, which is looked at on a case by case basis.