Is it legal for a company to demand or enforce a non-compete agreement with a offered corporate retirement package?

Asked on May 31, 2012 under Employment Labor Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the employee was already entitled to the package, such as under a previous settlement or employment agreement, the employer may not retroactively add additional terms or requirements to it, such as a non-competition agreement.

However, if the employee is not already entitled to the package, the employer is free to make signing the non-competition agreement (which it can then enforce) a condition of receiving the package. The employee is free to choose to reject the conditions (the non-compete) and the package if he thinks it's in his/her interest to do so.

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