Should I sign a non disclosure agreement?

More often than not new hires at companies are presented with a non disclosure agreement to sign a few weeks after starting that usually contain provisions concerning confidentiality, ownership of inventions, non-compete, non-solicitation of clients and employees, and arbitration.  At the end of these agreements, it usually contains a statement saying that the company has advised you to seek legal counsel before signing and you acknowledge that you have had an opportunity to consult with legal counsel before signing.  And, employers advise newly minted employees, many of whom left jobs to take the new job, that if they don’t sign they will be fired.  Wow, what a way to start a new job!

Can my employer enforce a non disclosure agreement?

So, what happens?  Most people just sign and return the document to HR without consulting an experienced employment lawyer like us to understand what a non disclosure agreement is and what they’re agreeing to.  That’s all well and good if the new job goes well but, what happens if things go south and either the person chooses to quit, or the company decides to part ways?  HR will pull out the agreement and seek to enforce each and every one of the obligations.

What is a non-compete agreement?

Why?  Non-compete agreements prevent employees from working in the same industry for similar companies in the city and state where they live—usually for up to two years!  And get this, during that period of time when you can’t work in the industry in which you have become expert, you won’t receive any severance pay either.  That’s right.  99% of non-compete agreements put you on the sidelines without pay and, many courts across the country have enforced these restrictions.

But that’s not the only ticking time bomb lurking in the agreement you signed thinking it was no big deal.  There’s also a commonly found provision that prohibits you from contacting any clients you were introduced to during your time at the job.  So, if you’re in sales or marketing, and say you’ve been at the company five years, now you find yourself out of a job, unable to apply to competitors who would likely pay up to hire someone with your experience, and, you can’t contact your “clients” to seek help in your job search or to go to work for them.

What happens if I breach the agreement?

And what happens if at this point you just say, ah, the hell with it, I’ll just apply to competitors, contact my clients, and do whatever it takes to land a new job?  You’ll likely receive a letter from your former employer’s lawyers letting you know that they’re on the case, you’ve signed a non disclosure agreement restricting what you can do to find a new job, they know what you’ve been up to, and you need to cease and desist from it right now or you’ll be sued.  To make matters worse, they point out, the agreement you signed when you weren’t thinking about what happens if this job goes south, also states that you, that’s right, you, are responsible for paying the $1000/hour attorney’s fees of your former employer should it decide to sue you—even after it made the decision to fire you!

How can an employment attorney help me?

If this doesn’t make you sit up straight and pay attention, then nothing will.  When presented with a non disclosure agreement to sign follow the admonition in it to seek legal advice: call us, it will be the best money you ever spend.  Even if after speaking with us you determine to sign at least you will know what you’re getting yourself into.