Q. We want to bind existing employees to a new noncompete agreement. Can we simply make agreeing to the contract a condition for continued employment?
A. No. In North Carolina, new consideration is required for a noncompete agreement to be valid. The new consideration can be the original offer of employment (not an offer of continued employment), a raise, a new compensation plan, a change in position, a bonus or other changes in the employment relationship that have real value to the employee.
If you are unsure, consult your attorney. He or she can structure the agreement so that it is valid and enforceable even for existing employees.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Public employers: OK to demand medical records if drug test leads to rehab
- How to make sure request for ADA accommodations blows up: Do nothing
- Whistle-Blower protection requires employee's intent to expose illegality
- OT would have been cheaper: L.A. company owes $3.2 million