What if They Want Me to Sign a Non-Compete Agreement?

Best: Don't sign. Even if it makes complete sense and seems harmless, there's just no advantage to you, so don't sign it. Delay a little by asking to have it reviewed by a lawyer. If they still come after you for it, talk with your boss and say, "The economics of the job market are this: I give you good work and value for what you pay me, and you don't fire me; on the other hand, you pay me well enough and treat me well enough and I don't quit. A non-compete takes away those incentives. I believe those economic principles are powerful enough to keep both of us on our toes. I'd rather not weaken that balance. What do we need to do to let this pass?"

Better: Negotiate compensation for it. If you're not allowed to work for or solicit clients for one year after you terminate, then how about getting 12 month's severance or some other compensation upfront or at the time of termination?

1. Go over it with a lawyer and limit the scope of the agreement as much as possible. Have it apply to named companies and products. Define precisely the future companies and individuals that are off limits and make sure everything else is fair game.
2. Reduce the time parameters of agreement.
3. Get rid of any 'would cause irreparable damage ...' phrase that leaves the consequences of violating it open-ended. Be very specific about the consequences of violating it.
4. Limit effect to voluntary termination — so if they fire you, then the non-compete is not applicable.
5. Have it automatically expire on the first anniversary of your hire.
6. Have violation decided by binding arbitration, not the courts.
7. Have 30-day written notice provisions entered into the agreement with a grace period for remedy so it can't be slapped on you at whim.
8. Delay its initial date of effectiveness. That way you get a chance to make sure you're going to stick with this new company lest you work one month, leave and are trapped.

Risky, but still OK: You can try the bureaucratic defense. That's where you create your own "red tape." Each step of the process will take a long time. Have your lawyer add clauses the corporate counsel must review every change in language. You can string it out as long as possible, hoping it will simply get lost in the shuffle.

Not recommended: Anything sneaky or devious. You might feel like resorting to deception, but the law of karma tenders few exemptions and you'll reap what you sow. If discovered, or even suspected, things might get worse: You might not only find the non-compete enforced, but you may be penalized for your miscreant behavior. Instead, negotiate straight up the best you can.