Is non-compete enforceable if laid off?

In Massachusetts, non-compete agreements and restrictive covenants are not enforceable against employees that were laid-off or terminated without cause. In California, non-compete and customer non-solicitation agreements in employment contracts are per se invalid.

What is a non-compete position?

A non-compete agreement is a contract between an employee and employer. A non-compete prohibits an employee from engaging in a business that competes with his/her current employer’s business. While an employer cannot require you to sign a non-compete, they may terminate, or choose not to hire you if you refuse to sign.

Can a non-compete agreement be enforced by an employer?

The validity and enforcement of a non-compete vary by jurisdiction and may require the former employer to keep paying the ex-employee a base salary during the non-compete period. A non-compete agreement legally binds a current or former employee from competing with an employer for some period of time after employment ceases.

Where can I find a non compete clause?

A non-compete clause, also commonly called a restraint of trade clause, is often found in contracts. You may find such provisions in employment agreements, sale of business agreements, franchise agreements and contracts where one party has access to confidential information and intellectual property of the other party.

Is the non-compete clause unenforceable in California?

Noncompete clauses are unenforceable in some states such as Oklahoma and North Dakota, whereas in California, for example, employers who require a non-compete clause can even be sued. Before signing, research the laws in your state.

Is it possible to void a non-compete contract?

Voiding a non-compete contract is possible in certain circumstances. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.

When does a non-compete agreement become enforceable?

A central goal of the law is to prevent non-competes from being used for low level employees. To that end, the law nullifies non-compete agreements for any employee earning $100,000 or less per year. Tip: Be careful to note that an employee must earn more than $100,000 for a non-compete agreement to be enforceable against the employee.

What’s the income limit for a non compete agreement?

To that end, the law nullifies non-compete agreements for any employee earning $100,000 or less per year. Tip: Be careful to note that an employee must earn more than $100,000 for a non-compete agreement to be enforceable against the employee. The law also sets an income threshold for non-competes used with independent contractors.

What is the new non compete law in Washington State?

Under Washington’s new non-compete law, employers who lay off an employee must provide compensation equivalent to the laid-off employee’s base salary at the time of the termination for the period of enforcement (less compensation earned through other employment during the period of enforcement).