After 2 1/2 years working as a CSR for a small Insurance Agency in "Smalltown", Michigan, my employer has decided to ask me to sign a non compete contract stating that if I ever left his agency I could not work for another insurance agency or financial institute within a 60 mile radius including Ohio & Indiana for a period of 3 years. The contract offered no severence package and stated that I would receive an hourly pay increase and possible commission in return. I asked what the pay increase would be and he told me that if I got my agents license I would receive an 8% increase (.88 an hour). I asked for a severence package to be included and he said no. I refused to sign the agreement and he terminated me. I filed for unemployment and was turned down stating that because I refused to sign the contract I basically quit. I am appealing this decision. Has anyone else ever been in this position?

Did you have a employment contract?

Was this a addition to that contract?

You have the right to refuse to contract with anyone, if you don't agree with the terms don't sign.

Your appeal should state you did not quit, you were terminate due to alleged contract with unacceptable terms.

Hello cub:

I agree with mr. yet. YOU did not quit. Your EMPLOYER changed the terms of your employment. He had the right to change the terms, but you also had the right to deem them unacceptable. You were terminated - you didn't quit. You should win your appeal.

excon

Ok, I will disagree, they wanted to add a new contract, and this was a required element of your future employment, so basically from the company view point, it was sign and agree or quit, ( the employee had the option)

In a at will situtation with no other employment contract, each day a company could change the terms of your employment, they can lower you pay, take away benefits or fire you. ( everyone thinks only about getting raises but the others happen ever day for some company in the US)

But yes, our company went to a new pay contract a year or so ago, and every employee had the option to sign it, or pack up his stuff, no one that left got unemployment ( I will note that maybe the person in California did ( they have different laws there)

So it is all in how it is presented, the still had and offered him continued emploiyment, but he decided not to accept the terms of continued employment. The employor always has the rights to change the terms of employment if there is no contract in place.

Now from a personal note I hope you do get your unemployment, and I am sorry it happened, but my opinoin is that as long as the company presents in property they will win, they merely have to say they never fired you, only required you to sign a non compeit agreement, you refused, thus you choose not to work there any longer.

I am not so sure you will win your appeal. In most states, if not all, you work at the employer's will which means he can discharge you for almost any reason. If you do win the appeal, what do you win? I guess the answer is either you job back (which I doubt you want, neither would I) or your unemployment compensation ? I don't know how much your State would allow you but let me guess, it's a lot less than what you would need, right? I would fina another company to work for and knowing how difficult it is to find licensed agents ( I know 'cause I am working like dog now because I can't find a licensed agent), you should be able to find something that pays much more. I don't know the labor market where you live but south of you about 600 miles, but I do know the market where I live and you would have been considered underpaid here all others factors being equal.

I'm on Chuck and Richard's side. Your employer made the non compete clause a condition of your employment. By refusing to sign, you effectively resigned. The choice to sign was yours.

Quote:

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Originally Posted by Fr_Chuck

each day a company could change the terms of your employment, they can lower you pay, take away benifits or fire you.

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Hello again:

So, just how much can they reduce your pay before you've been fired? A quarter? Half? 90%? At some point, were you fired? Yes, you were.

If employers could get away with that, nobody would ever collect un-employment.

excon

Quote:

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Originally Posted by excon

So, just how much can they reduce your pay before you've been fired? A quarter? Half? 90%? At some point, were you fired? Yes, you were.

If employers could get away with that, nobody would ever collect un-employment.

excon

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One can appeal the decision of the Unemployment agency. Sometimes they will rule that the changes being made were unreasonable and meant to force the employee to resign.

One factor here, that may work in the OP's favor is whether any other CSRs were required to sign the same contract. If he was the only one, he will win the appeal. If several others were offered the same deal, he will lose. But I don't see the requirement as unreasonable. Also, it was offered with a carrot (the raise).

cublake, did you have a employment contract while working the 2 1/2 years?

You stated that you are not licensed as a agent, was this non- compete contract an offer to improve to get a license?

Were you planning to quit and compete against them?

I was hired as a customer service rep. I had no prior experience in the insurance industry. My duties were to answer the phone, filing, sorting mail, to gather information from customers in order to give them quotes. There was no employment contract of any sort, no benefits at all. Within one week I was doing the quotes for auto... and homeowners within 3 months. I have no formal training in this field and my boss was a firm believer in training by fire. I was his only employee for the first 2 months as he had 2 that quit at the same time. After a few months we had some discussion of me getting my P&C license, he said that if he paid for the class that I would have to sign a non comptete contract. I said I live in this town and cannot agree to term of 3 years within a 60 mile radious. So he said maybe we could work on the terms. Aprox. An year later we again had some discussion about me getting licensed, so I asked him if I paid for the class myself if we could skip the non compete. He said he didn't want me to pay for it and that maybe we could work out a contract saying that I would reimburse him for the cost if I quit. I was OK with that but a few weeks later he changed his mind and he hired an agent that would work strictly on a commission basis. There were a few comments over the next year about me getting licensed as I was doing all the work of a licensed agent except for the agents signature on the applications. I was on vacation and upon returning he gave me a list of changes that he was making and one was that all employees are required to sign a non compete as he was tired of the high turnover in his agency. ( 8 CSR's in 3 years) And that I must get my license by 02/01/07. I tried to negotiate a severence package in the contract. He refused and I refused to sign. He terminated me 3 days later. In my 2 1/2 years I was never once late nor did I ever call in sick. I had perfect attendance except for vacation. There were no other reasons for termination.
I just have a hard time believing it is OK to change the terms after this time frame. If I were a legal secretary and after 3 years working for a firm, could they suddenly require me to pass the bar?

No employment contract, hourly employee, he wanted you to get a license, but you did not get yet.

Why would he want you to sign a non-compete contract when you are not even a licensed agent.

It seems he is afraid that you when you do get a license, that you will take away his customers. I do know that people deal with people and if the service is not there they will switch agencys.

I would still file the appeal and stated the facts you have given here,

Sorry, but the more you tell us the less of a case you have. Since all employees were required to sign the non-compete, that takes a lot away from your case.

I have several relatives in the insurance industry some of who have run their own agencies. What you experienced is not out of line. I think your boss was being very reasonable to you.

It won't hurt to appeal the unemployment ruling, but I don't think you will win.

He said that all employees must sign. However, yesterday I spoke to the girl that is still there and she has not been required to sign yet. She has worked there since April. My termination was six weeks ago.

If she is willing to help, get a notarizied statement from her.