I was given a non disclosure agreement for a severance package

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I was given a non disclosure agreement for a severance package

I believe I was unlawfully terminated, no previous write ups. Stated drop in
sales, which was not accurate, and customer complaints, not documented.

It is going on three weeks, with my earnings still not paid. Hostile work
environment. Is the non disclosure binding?

Asked on July 23, 2018 under Employment Labor Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

A nondisclosure agreement is a contract. For a contract to be enforceable, each side must give the other "consideration," or something of value. You give the employer a promise to not compete; they typically give you employment in return. When you quit, because employment was still available to you, the agreement is still binding; but if you are terminated or fired, they took the consideration away from you--you are no longer receiving something of value in exchange for not competing. Therefore, when the employer lets you go, the agreement no longer binds you because you are not receiving consideration to create a binding agreement.
However, if you had received something other than employment in exchange for not competing, like a bonus or stock for signing the noncompete, the agreement would still be binding even after you were terminated, because you received something of value for your agreement to not compete.


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