Voluntary Quit contract

[JaeShiel96]

Michigan-

Hello, the situation at with with me, two other employees, and my manager is that the owner of the company would like us to sign a non-compete contract stipulating we can't work for a similar company 1 year after we leave and within a 50 mile radius. Prior to this none of us were planning on leaving. This is the trade in which we all have experience and is our livelihood. I'm not going to sign an neither are they.

The owner knows about our refusal and is giving us a week to sign or is going to make us "voluntarily quit*", my question is, is how can we voluntary Quit if we're not quitting he's just changing policy? I would understand terminating but I don't think he's wanting to that because the possibility of unemployment is too high.

Like I said, we have a week so any information or advise would be greatly appreciated! Thank you.

 

[xylene]

One week is plenty of time to get a lawyer as a group.

Pay now or pay later.

 

[Chyvan]

how can we voluntary Quit if we're not quitting he's just changing policy?

You can't, but it's possible that refusal to sign the noncompete might be treated as a refusal of work.

The thing is that you don't have to raise the issue of refusal to sign the noncompete, but just know that your employer might so at a minimum save a copy and be prepared to discuss why the noncompete renders the job unsuitable if it even goes that far.

Your employer can say your job ended any way he wants. If he wants to say that you quit, he'll have to prove it or he has to prove that he fired you for misconduct. Neither is a piece of cake so long as you don't help. Be very careful if he wants you sign anything on your way out the door.

Also, consider that MI has a crappy UI system with a max of only 20 weeks so be sure that's what you want if he follows through.

 

[commentator]

Truly, it appears that either your employer is really scared of something (perhaps he's heard about another company coming in within your field to your area with better benefits?) or he's gotten some really bad legal advice about something, this thing of suddenly becoming so worried about you folks quitting him and going to the competition that he is demanding that you all sign this agreement.

What would happen if all three of you refuse to sign? And then of course it would make sense for you all three to wait as you should, for him to say, "Okay, since you refused to sign this, get out of here!" And of course you refuse to sign anything on the way out the door saying that by not signing the other agreement you are resigning from your position. Would the business be able to operate if you all three refused?

Which by the way, I see no way that this is a "refusal of work." Telling you "If you do not sign this non compete, you must leave the premises, you no longer work for me" is a termination, not a voluntary quit, or a refusal of work. And as someone pointed out, unemployment benefits are no substitute for a wage and they are very temporary, but they still cost the employer money. He's in candyland if he thinks that not signing a non compete is going to be classified as a voluntary quit.

But actually, I do think that a consult with an attorney, who could review this contract and see if it is binding and if he/she would advise you to sign it might be helpful.
Then the three of you could stand together and say, "No we don't think we want to sign." Also, investigate and see if there is some job activity or hiring going on in your area that the employer is worried about. It might be a negotiating chip for him to have to give you something better to keep you aboard.