What can I do if an employee refuses to sign a non-compete agreement?

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What can I do if an employee refuses to sign a non-compete agreement?

Asked on January 30, 2016 under Employment Labor Law, Texas

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

You can take just whatever action you deem appropriate. This is true unless doing so violates the terms of a union agreement or other employment contract. The fact is that, in an at will employment arrangement, a company can set the terms and conditon of employment much as it sees fit. This includes terminating or demoting a worker or reducing their salary if they refuses to sign a non-compete agreement.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

You can terminate them: employees may be terminated for refusing to sign a non-competition agreement, since signing such an agreement may be made a term, condition, or requirement of employment. Or if you don't want to terminate them right away, you could demote them, change their jobs/duties, suspend them, or cut their salaries (subject to the terms of any written employment contracts, if these employees have ones, and to minimum wage laws) until they sign.


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