Provided by: Jennifer Kirschenbaum, Esq.
June 13, 2023
Question:
Hi Jennifer,
My employment agreement is on auto renew but my employer presented me with an amendment with a more restrictive non compete. Is this legitimate? What about the new federal law making non competes illegal?
Thank you,
Dr. P
Answer:
First, the construct the FTC is considering is not law; right now its rumor. We'll continue to watch for a federal restriction on non competes. Doubtful we will see an iteration pass that is fully encompassing - business interests are too strong to destroy all protections around competition from high level employees (just my opinion).
Second, yes! We have plenty of case law to available indicative that courts will uphold a NEW more restrictive non compete offered in exchange for continued employment (not firing the person unless they accept the new more restrictive terms). Signing and banking on the non compete not being enforceable is a terrible plan. Instead, let's use the presentation of the addendum as an entre to negotiate on your behalf to effectuate modifications that best match your priorities, whether those be schedule, salary/bonus/benefits or duties related.
