So the take away here is that employers should begin to look beyond simple employment or continued employment as the basis for a non-compete agreement. If there is nothing of value that is exchanged for the promise of a non-compete by an employee, then there can be no contract. If that is the case there is nothing that the employer has given that is of value. The employer can terminate the employee quite literally before the ink on the non-compete agreement is dry. If an employer makes a promise of continued employment as the sole consideration for a non-compete agreement, the employer has promised nothing. If A makes an illusory promise, A’s words leave A’s future action subject to A’s own future whim, just as it would have been had A said nothing at all.” They do not purport to put any limitation on the freedom of the alleged promisor. An illusory promise is composed of words in a promissory form that promise nothing. “An illusory promise appears to be a promise, but it does not actually bind or obligate the promisor to anything. 139, 835 A.2d 656 (2003), The Maryland Court of Appeals ruled that United Healthcare of the Mid- Atl., Inc., 378 Md. In Maryland, there is a very similar case addressing the issue of at-will employment in the context of arbitration agreements.
The quote above is from the case of Baker v. The federal court hearing the case ruled “An offer of at-will employment, or the continuation of at-will employment is simply not a source of consideration under Missouri contract law.” The Interesting point about the cases cited by the judge in Durrell is that most of the cases dealt with the issue of at will employment arbitration agreements. Durell was asked to sign a non-compete agreement whose promise or consideration from his former employer was continued employment. Tech Electronics, Inc. Robert Durell brought an action, asking the court, to among other things, have his non-compete agreement declared unenforceable in order for him to pursue other opportunities. This was the exact issue in the Missouri case of Durrell v. However, sharp-eyed readers will note that continued at-will employment can be rescinded by the employer any time for any reason. Traditionally, the employer’s consideration, that is what the employer is promising, is continued employment of the employee.
In many circumstances, a non-compete agreement is signed at the beginning of an employment relationship. While at-will employment is highly beneficial in terms of labor market movement and the ability for employers to grow and shrink their workforce as necessary, at-will employment is not particularly conducive to most non-compete agreements.Ī recent case out of Missouri highlights the difficulty of legal consideration for non-compete agreements in an at-will employment state. One of the most difficult things for companies looking to have key employees, or any employees, sign a non-compete agreement is that most states have at-will employment. In Contracts, Employment Law, Small Business Advice
0 kommentar(er)
