Is a non-compete valid if the company closes?
Generally, if a business has closed its doors, there’s no one to enforce the provision…so you’re free to move forward with your activities.
Is my non-compete enforceable if my company is sold?
The U.S. Court of Appeals for the Eighth Circuit issued a decision in July 2016 stating that a non-compete agreement could be enforced by a company that bought all the assets of the employer.
Are non competes assignable?
Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.
Can my company sue me for going to a competitor?
Penalties for Violating a Noncompete Agreement A noncompete agreement is a contract, and if you break or “breach” it, your former employer can sue you for damages. Your old employer may file a lawsuit against you alone if you started working for a competitor or started your own competing business.
Are non competes enforceable across state lines?
Typically, the court will enforce a non-compete as long as it is reasonable in its time limit, geography, and the scope of activity restricted. The court will determine what exactly constitutes reasonableness on a case by case basis. Additionally, the agreement has to be a valid employment agreement.
Can a company keep you from working for a competitor?
Under California Business and Professions Code Section 16600, unless you were an owner of the business, any “non-compete clause” which forbids an employees who is fired or resigns from working for a competitor or starting a competing business is illegal and unenforceable.
Does being fired negate a non-compete?
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. Continued employment is valid consideration for a non-compete agreement in Florida. Florida statutes presume that non-compete agreements are valid.