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Binding employees to noncompete agreements

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in Employment Law,Human Resources

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.

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