Is non-compete binding if fired?
A non-compete agreement is not voided if you resign or are fired. If you violate an enforceable non-compete, you could be sued for any actual losses suffered by your ex-employer. In limited situations, a court could even order that you cease any type of activity that is contrary to the clause.
Do you have to sign a non-compete agreement if you get fired?
When you get a new job, your employer might require you to sign a non-compete agreement. This limits your options for employment after you leave your job. If you are fired, your agreement could still limit what you can do.
What’s the purpose of a non-compete agreement?
This is a document that prevents employees from leaving the company and going to work for a competitor. The purpose of a non-compete agreement is to keep trade secrets from going to a competitor through a former employee.
Why are non competes unenforceable in Illinois?
In 2017, Illinois enacted a law banning non-competes for low income workers, typically those earning less than $13 per hour 2. Even in states where non-competes are not banned, they are often considered unenforceable. From a purely ethical perspective, they limit one of the most basic premises of capitalism: the freedom to chose who one works for.
Can you work for a competitor if you are fired?
If you voluntarily leave or if you are fired, you still cannot go and work for a competitor, as a general rule. The employer still has trade secrets that he does not want to let go to a competitor. When employees are fired, they may be angry and more likely to give up trade secrets.
Do you have to sign a non compete agreement if you are fired?
But many employees will sign non-competes assuming they will not be enforceable. Many employees think that, just because an employer forced them to sign the agreement or be fired, that they are not bound by a non-compete agreement. That’s just not true.
What happens if a non-compete agreement is found unenforceable?
The employee who is willing to fight will sue the former employer for tortious interference with that employment relationship, and if the non-compete is held to be unenforceable, they will win, costing the former employer not only attorneys fees and costs, but possibly thousands in damages in the form of lost wages and non-pecuniary damages.
Can a non-compete agreement be signed in Florida?
Continued employment is valid consideration for a non-compete agreement in Florida. Florida statutes presume that non-compete agreements are valid. Truth be told, most employees don’t have the will or the resources to fight them.
How often should you review a non-compete agreement?
If you want employees to be bound by non-compete agreements, the best course of action is to have an attorney prepare them, and to have them reviewed at least once a year for any changes necessary. An unenforceable non-compete is worse than useless – it is dangerous to the employer who tries to enforce it.