Are non-complete clauses binding on a worker whose employment was terminated?

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Are non-complete clauses binding on a worker whose employment was terminated?

Asked on May 26, 2017 under Employment Labor Law, Maryland

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Non-competition agreements are not generally enforceable against employees who are terminated (or laid off). The reason is that the "consideration" for your promise to not compete (i.e. the thing of value which the employer gave you in exchange for your promise) was your continued employment. However, you should bring the agreement to a local employment law attorney, who can review it with you, since such agreements are contracts and its actual language/terms are critical to understanding what your obligations are.

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Non-competition agreements are not generally enforceable against employees who are terminated (or laid off). The reason is that the "consideration" for your promise to not compete (i.e. the thing of value which the employer gave you in exchange for your promise) was your continued employment. However, you should bring the agreement to a local employment law attorney, who can review it with you, since such agreements are contracts and its actual language/terms are critical to understanding what your obligations are.


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