Compensation for signing a non-compete clause

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Compensation for signing a non-compete clause

I am in MGMT at a company where I had
previously signed, without compensation,
a non compete clause.

The company was recently aquired, and I
am being told that I must sign a new non
compete clause, also with no
compensation.
Can they force me to sign it without
compensating me?

Asked on November 28, 2017 under Employment Labor Law, New York

Answers:

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

Answered 3 years ago | Contributor

Continued employement is considered to be compensation. Therefore, your employer can require you to sign this non-compete agreement. Further, absent a union agreement or employment contract to the contrary, you can legally be terminated if you do not sign. Bottom line, in an "at will" work arrangment, a company can set the conditions of the workplace much as it sees fit (absent some form of legally actionable discrimination).

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, they can force you to sign without additional comensation other than continuing to work there--continued employment (that is, not being terminated or fired) is your compensation for signing, and if refuse or fail to sign, your employer can terminate you.


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