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Loren, Lawyer
Category: Employment Law
Satisfied Customers: 28538
Experience:  More than 30 years in legal practice.
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My company was just bought by a business group and I have

Customer Question

My company was just bought by a business group and I have worked for the company for 11 years in outside sales. they are now asking me to sign a non-compete non-disclosure agreement because i am one of the highest paid sales i am afraid they will fire me if i do sign and hire someone for less money. Do i have to sign they are saying if i don't they will terminate me?
Submitted: 3 months ago.
Category: Employment Law
Expert:  Loren replied 3 months ago.

Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you. I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get.

Noncompetes are enforceable in Utah. Under the state’s new Post-Employment Restrictions Act. Employers of all sizes are subject to the Act, which was adopted by the Utah legislature on March 9, 2016, and applies to all post-employment restrictive covenant agreements entered into on or after May 10, 2016. The Act specifically:

  • prohibits employee noncompete agreements from exceeding one year after employment termination; and
  • requires an employer seeking to enforce a noncompete agreement to pay all employee litigation costs for unenforceable agreements.

So, yes, they can require the noncompete be signed as a condition for continuing employment, but the new Act requires they be negotiated in good faith. Do not be afraid to ask for modification of the propsed agreement.

Expert:  Loren replied 3 months ago.

I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.

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