Recently, I wrote about the importance of carefully considering whether to sign a covenant not to compete (also known as “non-compete” agreements) in connection with employment (see: http://www.hancelaw.net/noncompetes-can-interrupt-your-career). An article last week in the Star Tribune highlights the seriousness of this decision (Lee, Thomas. “Best Buy quietly shaving ranks at headquarters.” Star Tribune 6 Aug. 2013: A1. Print)
According to the article, now, just a few months after asking its mid-level employees to sign non-competes in consideration of any further stock incentives, Best Buy is terminating many of its employees. As such, people who signed the covenant not to compete two months ago may now be forced to look for a job in a completely different field to avoid a lawsuit by their former employer. Also according to the article, the job cuts have been so regular, usually occurring on Tuesdays, that the employees have nicknamed Tuesdays as “Tornado Tuesdays” or “Termination Tuesdays”.
Covenants not to compete are serious agreements. Carefully consider your options before signing one. At Hance Law Firm, we are happy to consult with you regarding non-compete agreements.