After I've been at a company for almost 2 years, do I need to sign an employment agreement?

I have been at my current company for almost 2 years. Just last week I received an email from our administrative assistant (we are a small company) stating that along with about 5 or 6 other people, I need to sign an employment agreement which contains clauses related to moonlighting, non-complete, inventions (we are a technology consulting firm), etc.

Some of the wording is pretty strong and I'm not sure I want to enter into this agreement as I would be restricted from doing things I would have not been restricted from previously.

I work in the state of Missouri, but the company is based in Illinois. Am I obligated to sign this document if I want to stay employed at this company?

Or, since I've been there for such a long time without an agreement in place, can I tell them I do not feel comfortable entering into this agreement? This route would, of course, lead to some other negotiations or talks.

CatLaw

What you are being requested to sign is legally considered a 'non-compete agreement'. It is not unusual for an employee to be asked to sign this after they have been employed at a company for a while.

WHy? Because the employee may have gotten a promotion/additional duties to the job where they will now be looking a important company information. The company may have just woke up to the major problems that an ex-employee can cause if that ex-employee uses confidential company information to help a competitor or to set up a competing company.

Yes, these are pretty strongly worded. In accordance with Illinois law the document must convey that the company feels this is an important issue to the continuing life of the company. In court one of the first things that a company needs to show is that a violaton of a non-compete agreement can financially cripple the company.

As an 'at will" employee (one not under a union or employment contract that guarantees continued employment) you have the option to say 'no thanks' to signing this document BUT then the company has the option to terminate you because you did not sign this. There is no way for anyone here to tell if the company has made this a sign this or be let go issue. But, that is usually how non-compete documents are handled.

As for you telling the company you do not feel comfortable with this and that leading to negotiations --- doubtful. In this economy there are lots of people out of work, so job security is pretty thin. If the reason that the company wants you to sign this is because you are going to be getting an assignment that allows you access to important company data, I guess they could give that assignment to one of your co-workers, but then why would they need to keep you?

I just do not know what negotiations you think you could get out of this. Going back to the first legal requirement of a non-compete agreement, that this is important to the financial life of the company, unless you are very, very, very important to this company, why would they chip away at the legality of the non-complete by knowling letting someone violate it?

What I do know is that in the vast majority of technology firms a non-compete is a common part of employment. Illinois laws allow an employer to require a non-compete agreement for employees.

Mel

You can take either approach; however, the company is not obligated to continue employing you if you refuse to sign an employment agreement. It is not unheard of for tech professionals to negotiate specific clauses in such an agreement but it depends on how willing the company is to negotiate with you.

countryguyhfc

Most likely you will have to sign the document or find new employment.

brandonlahman

Being that I am a HR Rep in the same line of business as you are, I can tell you this with certainty.

Sign the document or find other employment.

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