Noncompetes are intended to prevent one company from benefitting from information garnered from another company's former employee and may last from 90 days to five years or more, depending on the company and industry. Several states, including California, Massachusetts, North Dakota, and Oklahoma, have outlawed these covenants altogether. Greig notes that courts in other states will rule differently in the application of noncompetes based on the particular case, such as a worker laid off as part of a downsizing decision versus one who quit or was fired for cause. And if they change companies, it will often be among a circle of competitors. But refusing a noncompete outright without leaving room for negotiation could send a company the message that a candidate is not willing to stick around very long, Greig warns.
Some employees request time to look over a contract with a lawyer.
If you have that option and the company you're talking to is OK with that, it can be a good idea. Greig suggests looking at the reasonableness of the individual elements in the clause, perhaps narrowing the scope of the area they cannot work in or reducing the duration. Be aware of the penalties Employees should not be fooled into thinking that companies will forget about noncompetes once a worker has moved on. An employee can be enjoined by a court from working at their current company and be sued for damages suffered as a result of working for the competitor. In some states the former employee can also be called to pay attorney fees for the company enforcing the agreement, according to Greig.