When To Sign A Non Compete Agreement

In order to examine in more detail the interaction between labour characteristics and the use of non-competition clauses, we can examine the relationship between non-competition clauses and wage levels. The survey included a question about the average salary level of employees in the company. Table 4 shows the percentage of jobs with non-compete clauses due to the average salary level of employees. The average wage level of survey participants is divided into quartiles and annual wages are converted to equivalent hourly wages for comparison purposes. The use of non-compete clauses tends to be higher for higher-paying jobs than for lower-paying jobs. However, it is striking that more than a quarter – 29.0% – of the responding establishments with an average salary of less than $13.00 use non-compete clauses for all their workers. 24. I am negotiating a non-compete obligation. Are there certain things I should ask? Not necessarily. If you feel that you understand what it is and you are not confused by the wording of the document itself and the contract seems quite balanced, you can decide to sign on the line and hope that there is no problem. Employees benefit from non-competition clauses because they receive something valuable in exchange for signing the non-competition clause.

In most cases, the value element is the order. A promotion or increase in exchange for signing is also considered something valuable.