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  • Non-compete agreement

    Hi,

    As a condition of continued employment, workers at a company engaged in government contracting are being asked to sign the following non-compete agreement. Is this enforcable or even legal? Thanks. (note I changed the company name to XXX...)


    Non-Compete Agreement
    Employee agrees not to change sides or directly compete against XXX during the period of employment with XXX and for a period of two years following termination of employment with XXX.

    The provisions and guidelines associated with “impartiality in performing official duties” contained within 5 CFR 2635 include a two-year disqualification period for a government employee’s participation in contractual matters involving a former employer. Hence, no XXX employee may accept a position with the government customer organization holding a contract with XXX and also have any direct oversight or relationship with contractual performance by XXX for that customer for a period of two years after leaving employment with XXX.

    XXX employees may not terminate employment with XXX and join a competitor to XXX in pursuit of the very same contract that the employee was supporting for a period of two years after leaving employment with XXX. Should a XXX employee fail to adhere to the intent of this agreement, then the employee or the hiring company will be legally bound to reimburse XXX for all pay and entitlements paid to the employee for the last 12 months of their employment with XXX.

    Should XXX fail to secure the follow on contract as a result of any competition, then the prohibition against employees seeking positions with the contractor awarded the contract is null and void.
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