It is not uncommon for employers to ask existing employees to
sign non-compete agreements. For example, new management may want
to tighten up a company's protections. Or, changes in the
business may make the need for employee non-competes more
important. But non-compete agreements signed by existing
employees are not always enforceable and often require the employee
to receive meaningful new consideration. In other words, the
employee must receive something of value in return for the promise
not to compete.
The majority of states permit continued employment by itself to
serve as consideration for a non-compete agreement. In at least
twelve states, however, some form of additional consideration is
required. And, in at least six other states, the law
regarding the need for additional consideration is unclear.
