If I’ve been laid off, what are my rights regarding an non-compete agreement that I signed?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I’ve been laid off, what are my rights regarding an non-compete agreement that I signed?
I have a job opportunity with a competitor, but signed an agreement not to compete. Can it be enforced? What are my options?
Asked on December 17, 2015 under Employment Labor Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
The "consideration"--or thing of value--which you generally get when signing a non-compete is continued employment; if you are laid off or terminated, there is now no longer any consideration for your agreement, and it cannot be enforced against you. (The law does not let the employer terminate you while also preventing you from working elsewhere.) So as a general matter, you can pursue the opportunity.
The exception would be if you received some separate payment or assets (e.g. a bonus; stock or stock options; etc.) to sign the agreement--something over and above employment. If you did, then because you received an independent benefit, the agreement is still enforceable.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.