Does a Non Compete hold up if I am laid off?

Employment 2 views 2 answers
I signed a Non Compete - it stated I may at any time, work in my industry however, I cannot contact any customers obtained while working for my employer for 2 years after my leaving the company. I was however laid off...

Attorney Answers

2
John Ferry ·
Brian's answer is right on the money. There is some older Pennsylvania case law saying, in essence, that the non-compete clause may not be enforceable if the company has terminated you. But this is a very narrow exception that may not apply to you. You should consider having an attorney review this with you.
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Brian Hester ·
A Non-Compete Covnant is still enforceable even if you are terminated. Whether THIS Covanant is enforceable may be debateable. Generally speaking, most court hold that a CNC is only enforceable if the restrictions are reasonable in duration and geographic limitations (if your employer doesn't have an office anywhere near where your new job is, then they likely cannot bar your employment under a CNC.) Factors a court is going to look at is the time, geographic limitations and the skill and training your job required as well as your access to the employer's trade secrets (client lists, etc.) Of course, an employer can waive their rights to a CNC. From what you said, it sounds like you can work so long as you don't contact any of your ex-employer's clients. I think it's likely a court would find this a reasonable restriction and find that it is enforceable.
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