If your company has asked you to sign a non-compete agreement, you must probably be wondering what this piece of document is. While you might think it is just some paperwork like any other terms of joining a company, you are wrong.
A non-compete agreement can be a turning point for your career that consists of several restrictions for you to work. For example, you are restricted from working with another firm in the same field in the present and future.
Companies usually do this to protect their financial and other data; however, you must be careful before signing a non-compete agreement. You should consult a non-competition agreement lawyer Charlotte NC, before giving your authorization to the clause. Your lawyer will understand and point out any threats to your career in the agreement.
Here is everything you need to know about a non-compete agreement.
Everything you need to know about non-compete agreements
- What is a non-competition agreement?
A non-compete agreement is a legal document that restricts you from working with a fellow competitor while you are serving your job or even after you no longer work for the company. The restrictions follow a period, region, and industry. The time restriction will forbid you from working for a competitor firm for a limited time. The region restriction stops you from working in a particular geographic area, for example, entire America. Lastly, the industry restriction does not allow you to work with a firm in a similar industry.
- Why should you be careful while signing a non-compete agreement?
Signing a non-compete agreement without carefully understanding it can demolish your entire career. The clause restricts you from growing your work career in several ways. For example, if you sign a non-compete agreement comprising time restrictions, you will not be able to work for an extended period. This time can create a gap in your career, making it difficult to get a job in a good position again.
A company sues a nonagreement clause to block underpaid workers from finding better job opportunities for themselves by binding them a legal contract. The agreement is made to destroy the chance of increased income and a better work style.
- What problems can a non-competition agreement create in a worker’s life?
Primarily non, competition agreements were made to protect a company’s trade secrets and confidential financial information. While this agreement works well for high post employees, it is a complete disaster for low-wage workers, restricting them from creating a better life in terms of the economic aspect. In some workplaces, the workers are also forced to perform work that does not fit their job description.