Employers should keep these issues in mind when asking workers to sign restrictive agreements. It is also important to know whether potential new recruits have a non-compete agreement with a former employer. In some cases, the new employer may be held liable to the former employer if the worker`s hiring was contrary to the agreement. Different rules may apply to situations in which a business is sold in whole or in part and where the buyer and seller are entitled to a restrictive agreement. The Tribunal found that the agreement was inappropriate and therefore unenforceable, and stated, among other things, that it imposed greater deference on Archibald than was appropriate to protect Brand Makers` interests. The court noted the following flaws in the agreement as the basis for its conclusion: the agreement was “silent on geographical restrictions, type of employment or industry” that was prohibited in Archibald. [xxvi] I am an important collaborator in an organization and we have been taken over by a new company. If I refuse to sign the new non-competition clause and I am fired because I don`t sign it, can I gain unemployment by looking for a new job? Several other states have attempted to impose non-competition bans. Illinois prohibits non-competition with “low-wage” employees, and new Jersey and New York legislation attempts to do the same. Bills in the Vermont and Pennsylvania legislatures would generally prohibit non-competition bans (with limited exceptions).
The Vermont bill would only allow competition bans in the context of the sale of a business or the dissolution of a company or a stake in a limited liability company. Pennsylvania law would have similar exceptions, but it would also require Pennsylvania to be the law and court in any non-compete agreement. In other words, the choice of non-competition laws and jurisdictional rules would not be recognized in Pennsylvania. Several bills in the Massachusetts legislature would prohibit non-compete bans on non-exempt workers and terminate or dismiss these employees for no reason. In other cases, Massachusetts law would limit non-competition obligations to 12 months and require employers to continue paying wages after the end to workers subject to a non-compete obligation (i.e., garden leave).