{"id":339306,"date":"2025-12-11T15:06:06","date_gmt":"2025-12-11T15:06:06","guid":{"rendered":"https:\/\/accountants4yourbusiness.co.uk\/business\/legal\/should-you-sign-an-employee-noncompete\/"},"modified":"2025-12-11T15:06:06","modified_gmt":"2025-12-11T15:06:06","slug":"should-you-sign-an-employee-noncompete","status":"publish","type":"post","link":"https:\/\/accountants4yourbusiness.co.uk\/?p=339306","title":{"rendered":"Should You Sign an Employee Noncompete?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<p style=\"font-weight: 400\">Should you sign a noncompete proposed by your employer?<\/p>\n<p style=\"font-weight: 400\">The short answer is no. There are some good reasons not to sign an employee noncompete. I\u2019ll cover those in another post. For now, I\u2019ll just say that we should normalize saying \u201cno\u201d to employee noncompetes.<\/p>\n<p style=\"font-weight: 400\">There are exceptions, of course.<\/p>\n<h3 style=\"font-weight: 400\"><strong>Exception no. 1: It was part of the deal <\/strong><\/h3>\n<p style=\"font-weight: 400\">The first exception is when a noncompete was part of your deal. If the terms of the job offer included a noncompete, then it\u2019s fair for the employer to include a noncompete in your employment agreement (sort of).<\/p>\n<p style=\"font-weight: 400\">Even then, it may be a good idea to have a lawyer review the agreement before you sign. I cover this in <a href=\"https:\/\/fiveminutelaw.com\/2023\/02\/08\/should-you-pay-a-lawyer-for-non-compete-advice\/\" target=\"_blank\" rel=\"noopener\">Should You Pay a Lawyer for Noncompete Advice?<\/a><\/p>\n<p style=\"font-weight: 400\">If a noncompete was not part of your deal, I suggest you politely decline. \u201cI\u2019m sorry, there must be some mistake,\u201d you can tell your boss, or HR, or whoever. \u201cThe terms of my job offer did not include a noncompete.\u201d<\/p>\n<p style=\"font-weight: 400\">This probably won\u2019t go over well. You\u2019ll hear something like \u201cuh, yes, we realize your original job offer did not specifically include a noncompete, but . . .\u201d<\/p>\n<p style=\"font-weight: 400\">\u201cWe had a bad experience with a former employee recently, so the owner now wants everybody to sign one.\u201d<\/p>\n<p style=\"font-weight: 400\">&#8211; or &#8211;<\/p>\n<p style=\"font-weight: 400\">\u201cIt\u2019s just standard language, and noncompetes don\u2019t really get enforced anyway.\u201d<\/p>\n<p style=\"font-weight: 400\">&#8211; or &#8211;<\/p>\n<p style=\"font-weight: 400\">\u201cThe private equity firm that just bought us says all key employees need to sign one.\u201d<\/p>\n<p style=\"font-weight: 400\">etc.<\/p>\n<p style=\"font-weight: 400\">None of these are good reasons, but let\u2019s assume you want to be a good team player.<\/p>\n<p style=\"font-weight: 400\">\u201cOk,\u201d you might say, \u201cbut a noncompete changes my deal significantly.\u201d \u201cWhat am I getting in return?\u201d<\/p>\n<p style=\"font-weight: 400\">That brings up the second exception.<\/p>\n<h3 style=\"font-weight: 400\"><strong>Exception no. 2: The employer will pay you to sit out <\/strong><\/h3>\n<p style=\"font-weight: 400\">In the words of Motown founder Berry Gordy (later covered by the Beatles), your loving gives me a thrill, but your loving don\u2019t pay my bills.<\/p>\n<p style=\"font-weight: 400\">Give me money. That\u2019s what I want.<\/p>\n<p style=\"font-weight: 400\">Think about it. If your employer expects you to sit out of the industry for a year, or two years, or longer, then it should pay you to do that.<\/p>\n<p style=\"font-weight: 400\">As a rule of thumb, I like to tell employee clients that if the employer proposes a one-year noncompete, you should propose one year of severance pay. If they want a two-year noncompete, ask for two years. You get the idea.<\/p>\n<p style=\"font-weight: 400\">It think it\u2019s a fair trade. Most people can\u2019t find a job paying nearly what they are currently making if they have to find a job in a different industry, or if they can\u2019t bring their clients or customers with them to another employer.<\/p>\n<p style=\"font-weight: 400\">Also keep in mind, your employer could fire you the day after you sign the noncompete (assuming at-will employment) and still insist on your compliance with it. The law only recognizes a duty of loyalty in one direction, and it ain&#8217;t in yours.<\/p>\n<p style=\"font-weight: 400\">So when your employer proposes a noncompete, I suggest proposing commensurate severance pay to go with it.<\/p>\n<p style=\"font-weight: 400\">This also doesn\u2019t tend to go over well.<\/p>\n<p style=\"font-weight: 400\">Which brings up the third and most important exception to my general advice not to sign an employee noncompete.<\/p>\n<h3 style=\"font-weight: 400\"><strong>Exception no. 3: You have no choice<\/strong><\/h3>\n<p style=\"font-weight: 400\">This is the most unfortunate, and most common, reason to sign a noncompete. In many cases, the employer will present the noncompete as take it or leave it, i.e. you are free not to sign it, but in that case here\u2019s a free banker&#8217;s box for those family photos in your office.<\/p>\n<p style=\"font-weight: 400\">Sure, you could say take this noncompete and shove it, but that\u2019s not a realistic option for most people. You\u2019ve got bills to pay, you\u2019ve got mouths to feed, there ain\u2019t nothing in this world for free.<\/p>\n<p style=\"font-weight: 400\">If losing the job means you will struggle to pay your bills next month, or the month after that, it\u2019s a no brainer. Sign the noncompete. Then save up some money for a lawyer.<\/p>\n<p style=\"font-weight: 400\">____________<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1740 alignleft\" src=\"https:\/\/fiveminutelaw.com\/wp-content\/uploads\/2020\/05\/Head-Shot-Casual-300x240.jpg\" alt=\"\" width=\"228\" height=\"182\" \/><\/p>\n<p style=\"font-weight: 400\"><em>Zach Wolfe (<a href=\"mailto:zach@zachwolfelaw.com\" target=\"_blank\" rel=\"noopener\">zach@zachwolfelaw.com<\/a>) is a Texas trial lawyer who defends noncompete and \u201ctrade secret\u201d lawsuits at Zach Wolfe Law Firm (<a href=\"https:\/\/www.zachwolfelaw.com\" target=\"_blank\" rel=\"noopener\">zachwolfelaw.com<\/a>). Thomson Reuters has named him a Texas \u201cSuper Lawyer\u201d\u00ae for Business Litigation every year since 2020. <\/em><\/p>\n<p style=\"font-weight: 400\"><em>These are just his personal opinions. Every case is different, so don\u2019t rely on this post as legal advice for your case.\u00a0<\/em><\/p>\n<p>The post <a href=\"https:\/\/fiveminutelaw.com\/2025\/12\/01\/should-you-sign-an-employee-noncompete\/\">Should You Sign an Employee Noncompete?<\/a> appeared first on <a href=\"https:\/\/fiveminutelaw.com\">Zach Wolfe Law Firm<\/a>.<\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>Should you sign a noncompete proposed by your employer? The short answer is no. There are some good reasons not to sign an employee noncompete. I\u2019ll cover those in another post. For now, I\u2019ll just say that we should normalize saying \u201cno\u201d to employee noncompetes. There are exceptions, of course. Exception no. 1: It was [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":159133,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[13604,23898,689],"dealstore":[],"offerexpiration":[],"class_list":["post-339306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-employee","tag-noncompete","tag-sign"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Should You Sign an Employee Noncompete? - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Should You Sign an Employee Noncompete? - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Should you sign a noncompete proposed by your employer? The short answer is no. There are some good reasons not to sign an employee noncompete. I\u2019ll cover those in another post. For now, I\u2019ll just say that we should normalize saying \u201cno\u201d to employee noncompetes. There are exceptions, of course. Exception no. 1: It was [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-11T15:06:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/accountants4yourbusiness.co.uk\/wp-content\/uploads\/2025\/03\/Head-Shot-Casual-300x240.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"240\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306#article\",\"isPartOf\":{\"@id\":\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/accountants4yourbusiness.co.uk\/#\/schema\/person\/b8eaddeb20a8727558e0d0cddcca426e\"},\"headline\":\"Should You Sign an Employee Noncompete?\",\"datePublished\":\"2025-12-11T15:06:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306\"},\"wordCount\":764,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/accountants4yourbusiness.co.uk\/#organization\"},\"image\":{\"@id\":\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306#primaryimage\"},\"thumbnailUrl\":\"https:\/\/accountants4yourbusiness.co.uk\/wp-content\/uploads\/2025\/03\/Head-Shot-Casual-300x240.jpg\",\"keywords\":[\"Employee\",\"Noncompete\",\"Sign\"],\"articleSection\":[\"Legal\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306\",\"url\":\"https:\/\/accountants4yourbusiness.co.uk\/?p=339306\",\"name\":\"Should You Sign an Employee Noncompete? 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