New hire refuses to sign non-compete contract after receiving it weeks into their role, demands a meeting with CEO instead: 'I have no choice but to walk away'

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  • Man Concentrating on Reading Contract
  • Received an unfair non-compete 3 weeks into my new role

    I am three weeks into a new role as a VP, and my new employer, without warning, emailed me a Docusign contract with no context, which turned out to be an incredibly unfavorable non- compete agreement.
  • I immediately began reading and noticed several red flags: \- the most obvious, of course, is the timing \- it states that I cannot work for a competitor two years after I leave (I think at the beginning it originally read as three, then pivoted to two)\it says that I cannot hold other work outside of this job, which the
  • owners know I own a consulting company \- it outlines in mile radius the areas in which I cannot compete (and it is one exhausting list) \- it says that I agree to my pay, although my role has already expanded in three weeks time \- and finally, it says I need to reimburse them up to $1,500 for training if I leave within two years I obviously did not sign it.
  • I immediately went to HR, and asked to speak with them. I first asked why this was presented to me on Week 3 and not before or during on- boarding, and they said that it took the attorney a while to get back to them.
  • Then I shared how my role has already expanded considerably since I started and asked to revisit my job description and compensation.
  • She said that she'd inform the CEO and another executive leader of my request. That afternoon, I miss a call from the CEO, but I was in a meeting.
  • The next morning, I'm picking up on a different vibe from the owners, and HR informed me that the CEO would talk with me.
  • I heard nothing. As I've sat with this even longer, I absolutely in good conscious cannot sign this document in it's current form.
  • Businessman in Suit Tearing up Job Contract in Office Closeup
  • In fact, this whole situation has me severely questioning the character of the owners, and I cannot agree to work for a company who engages in underhanded behavior.
  • I have already reached out to an attorney to review the contract and have developed a game plan for my next steps.
  • If they say that they are unwilling to make any concessions, I have no choice but to walk away immediately.
  • I am disappointed that this situation even occurred. But to be honest, I think they realized just how smart | am and are trying to legally bind me.
  • What are your thoughts, and do you have any recommendations?
  • gward1 Try to negotiate with the CEO. But honestly I would just start looking for another job, what they did is pretty shady. If they aren't willing to negotiate and they want to lose someone so quickly that's on them. In highly skilled professions it's not easy to find a good fit for the role, it would take at least a month to put someone else in there. I have a feeling though they would be open to negotiation.
  • Harbinger_Kyleran If they continue to push for signing it counter offer by asking for a golden parachute, say a years salary plus health care paid also if you are terminated for any reason outside of a criminal action. As others said, a lawyer would be really helpful for this.
  • calicali I'd tell them you need your lawyer to review it and get advice from a local employment lawyer. State laws vary on the legality of those terms. However, if this situation has given you the ick on this company you should just leave. Requiring a VP to pay back training costs if you leave after 2 yrs is not a sign of a sane, stable company.
  • Used_Mark_7911 Do not sign this and start looking for a new job.
  • Various-Maybe I think you are getting bad advice to get a lawyer to review and have a big negotiation. Just don't sign it. You don't need to have a big dramatic refusal either. Just don't bring it up. If they ask, say no. If they fire you, then consider talking to a lawyer.
  • Winston_The_Pig Do a quick search on your state laws. I only know about Utah's non- competes but the statute explicitly states that non competes can only last one year and any contract that goes over that limit is void. I'd talk to an attorney and have them redline it to a more agreeable nature.
  • Distinct_Librarian29 Waiting until you've been in the role for three weeks to spring this on you is incredibly underhanded. It shows either horrible internal organization or rotten character on the leadership's part. Don't sign it. For a non-compete to be legally binding after you've already started, there generally has to be new 'consideration' like a sign-on bonus, or a severance package to compel you to sign. Renegotiate or walk.
  • Rough_Employment6785 I had a noncompete similar. I was advised by the attorney I consulted with, some of those provisions are unenforceable. I'm not a lawyer and your specific situation could be different. However, the employer who asked me to sign that was..... immoral. So, in my personal opinion, start looking and document everything. 3 weeks isn't long enough for them to show their true colors.
  • Merrill1066 I am not a lawyer, but I have studied up on this stuff a bit that contract is non-enforceable and won't stand up in court. Any actions against you would be immediately dismissed. non-compete clauses are almost always unenforceable, save for in very specific industries, and under very narrow guidelines.

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