Wednesday, February 16, 2011

Am I a slave to my non-compete?

Situation: An executive has been successful at saving a company from drowning in red ink. The company is now smooth sailing down the black ink Nile. But it refuses to provide any raises or promotions to this employee who has frequently asked for it to do so. The executive thinks she cannot ever leave the company because of her non-compete.

Assessment:
First, did a lawyer review the non-compete (NC)yet? That must be done before proper advice can be given on it.
Second, an employee can't force any employer to give her a raise without a contractual obligation to do so. Does the executive have one?
Third, if the employee is being under appreciated and underpaid, why would she want to stay long term? If the executive has an updated resume showing how she turned the company around, she should be a great catch for another company! She can use the NC as an excuse never to leave, but that is not a reasonable understanding of the NC. She is not a slave to this unappreciative and stingy employer. Chances are, however, she is wearing her disappointment on her sleeve and the company resents her demands to be properly rewarded. She can let them control her fate or she can take charge of it instead!