Whether a noncompete is beneficial or not depends on which side of the table you sit. In my opinion, it is only beneficial to employers, not to employees unless maybe you receive a very substantial payment for signing it, which is rarely if ever the case. After all, a noncompete restricts the employee's ability to work within a certain geographical area for a specific contractually agreed-upon period of time, typically anywhere from six months to three years. In some states you don't have to offer anything to an employee in exchange for signing a noncompete agreement other than a job, even an employment-at-will position suffices in some jurisdictions. Obviously, drafting a valid noncompete can be very beneficial to employers. How many employees stay with a company for their entire career? No matter the great intentions of each side when the employment relationship begins, things can go downhill. Even if that doesn't happen, many employees leave at some point, for any of a multitude of reasons.
There has to be a valid business interest to protect, among various other requirements for a valid noncompete. Thus, requiring your cashier to sign a noncompete isn't likely to get you any legal protection nor should it. As an employee, if you feel you are stuck having to sign a noncompete (question yourself whether you really are stuck), have a qualified attorney review it before signing (it is truly amazing how often people just sign what is presented without even reading it, let alone seeking legal review). Negotiate it to the least restrictive terms and conditions possible (things like the narrowest possible time window, narrowest geographical restriction, etc.). I have yet to meet an ex-employee who was happy he/she had signed a noncompete. Sometimes you can negotiate a release from the noncompete when the employment relationship ends, but that will cost you money just in attorney fees alone. If you have to defend a lawsuit alleging your breach of a noncompete, it costs significant money even if you win. Think before you sign, read before you sign, negotiate before you sign, and get legal advice before you sign. It really is that simple.
http://www.employmentlawman.com/monday-morning-musings.html
There has to be a valid business interest to protect, among various other requirements for a valid noncompete. Thus, requiring your cashier to sign a noncompete isn't likely to get you any legal protection nor should it. As an employee, if you feel you are stuck having to sign a noncompete (question yourself whether you really are stuck), have a qualified attorney review it before signing (it is truly amazing how often people just sign what is presented without even reading it, let alone seeking legal review). Negotiate it to the least restrictive terms and conditions possible (things like the narrowest possible time window, narrowest geographical restriction, etc.). I have yet to meet an ex-employee who was happy he/she had signed a noncompete. Sometimes you can negotiate a release from the noncompete when the employment relationship ends, but that will cost you money just in attorney fees alone. If you have to defend a lawsuit alleging your breach of a noncompete, it costs significant money even if you win. Think before you sign, read before you sign, negotiate before you sign, and get legal advice before you sign. It really is that simple.
http://www.employmentlawman.com/monday-morning-musings.html
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