Agreements you have to sign to get a job

Resources

• Signing Release Agreements
• Legal article on non-compete agreements

Mandatory Arbitration Agreements say that workers will take disagreements with their boss to an arbitrator instead of going to court or enforcing their rights. Mandatory arbitration (also used by health insurance companies to protect themselves from being taken to court) is usually good for your boss and bad for you. Arbitrators don't have to follow the law to make decisions. Arbitrators knows that if he sides with the employees too often, they won’t get hired for any more work. Usually, only the employers know how arbitrators have ruled in other cases and you may not be able to find out. In arbitration, you also do not have discovery (where you get to ask the company for relevant documents help your case) like if you go to court.

If you can, don't sign a mandatory arbitration agreement. If you have to sign, there are some situations where a court will decide you still have rights to go to court, instead of arbitration. There are also certain legal protections that you can’t be forced to give up. If you have signed an agreement, talk to a lawyer about your situation.

Non-Compete Agreements say that you can not work for another company that competes with your employer for a certain period of time and in a certain geographic area (for example, you can't work for a competitor within 50 miles for 2 years after you leave). You should only be asked to sign a non-compete agreement if you have access to sensitive business information (like lists of customers) or trade secrets (things that competitors can't easily learn and that your boss tries to keep secret). Usually, non-compete agreements are only signed for high-paying jobs.

If you are asked to sign a non-compete agreement, try to negotiate to change it. Examples include: ask that it only apply if you quit your job, but not if you are laid-off or fired; try to limit the number of companies that you can't work for; try to shorten the time or make the area smaller before you can work for a competitor.

You can ask to be paid extra money for signing a non-compete agreement, since it affects your ability to make a living. If you take money in exchange for signing a non-compete agreement, it may make it harder to argue in court that you shouldn't have to live by it.

Sometimes people appeal the non-compete agreement in court. Don't assume you would succeed in appealing a non-compete agreement -- it depends on the specific situation, the terms of the agreement, and state law. Generally, judges look at how much an agreement stops you from making a living, how long you can't work in an area, if the agreement is too broad, and if you really had access to trade secrets which you could share with a competitor.

Talk to a lawyer with any questions about a non-compete agreement you are asked to sign or that you've already signed.