When an Employee Refuses to Sign a Restrictive Covenant
Restrictive Covenants
The concept behind restrictive covenants is simple – employees agree that for a reasonable period of time following the termination of employment with their employer, they will refrain from competing with that employer. So long as the temporal and geographic restrictions are reasonable and so long as the restriction is not harmful to the employer or against public policy, restrictive covenants are generally enforceable. But what happens when an employee refuses to sign a restrictive covenant? Can an employee be fired for failing to do so?
Courts, including Connecticut, are split as to this particular issue. One position taken by courts is that because the essence of at-will employment is the ability of an employer to fire an employee at any time, for any reason, an employer has the right to terminate an employee for refusal to sign a non-compete. Conversely, some jurisdictions have held that employees who are terminated for refusing to sign a non-compete may maintain a wrongful termination cause of action against their employers.
Maya Murphy P.C. has proudly been included in the 2024 Edition of Best Law Firms®, ranked among the top firms in the nation. In addition, Managing Partner Joseph C. Maya has been selected to The Best Lawyers in America® 2024 for his work in Employment Law and Education Law in Connecticut. Recognition in Best Lawyers® is awarded to firms and attorneys who demonstrate excellence in the industry, and is widely regarded by both clients and legal professionals as a significant honor.
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