Employee Refuses to Sign New Employment Contract Containing Expanded Non-Compete

ProudAmerican

All our managers, when they were hired, signed an employment contract containing a covenant not to compete covering three counties. Our company has since expanded to several additional counties, so we are having our managers sign new contracts with the expanded covenant not to compete. Instead of naming the counties, we are just stating that the geographical area to which the covenant applies covers all places wherever our stores are located. We are providing a raise or a promotion as consideration for the expanded covenant. One employee refuses to sign to contract with the expanded covenant. Can we terminate his employment for his refusal to sign since we are paying him additional consideration for the covenant?

Your thoughts are greatly appreciated!

Big Thom

Isn't that in effect changing the terms and conditions of their employment? The original agreement was for three counties, now you are changing it to unlimited counties? I don't think I would sign that either.
Was there any kind of negotiation offered in the amount of the raise and promotion? Where the employee could negotiate a better deal considering the change in conditions?
I would consult your labor attorney on how to handle this. They should have advised you
on how to what to do if this situation developed when they reviewed the new agreement before you gave it to the employees.

sonny

I think you need to talk to an attorney, too.