non compete and downsizing

What is the name of your state?Florida

My position was just terminated due to downsizing and reorganization of my division of the company. They gave me five days notice of such.

I was told by a headhunter (to which I didn't believe) that since it was downsizing position elimination and not being fired, that courts wouldn't uphold the non compete/solicitation as my previous employer can't keep me from gainful employment and making a living. Is this true??

It depends upon both the laws of your state and the EXACT wording of the agreement. The employer MAY agree to void the non-compete. Whether they can be COMPELLED to or not depends on the two factors in my first sentence.

State: Michigan

I am in the exact situation, my employer laid me off. I also heard that a non compete/diclosure is null and void, does any one know where I can get more information on this?

Big subject...

The whole subject of non-competes/disclosures have made a lot of lawyers rich. But...here's a couple of things I know...

1. The contracts are not "automatically" null and void because you were laid off, unless the contract includes language to that effect. Some lawyers would argue that they are only giving you the right to draw unemployment.

2. Many non-compete agreements are unenforceable anyway. Too vague, too extensive, no adequate compensation offered for signing in the first place.

3. Unless you make too much noise in competing with your ex-employer, and cause them extensive harm, its unlikely they'll try to enforce the agreement...because...

The only way to settle this is in court...and, since we have the best legal system money can buy...he who spends the most money usually wins. If the company has money problems already, and you don't actually make that worse for them, its unlikely they'll sue.

BTW, even if the non-compete is eventually determined to be unenforceable, that does NOT mean that a non-disclosure is also void.

wert said:

What is the name of your state?Florida

My position was just terminated due to downsizing and reorganization of my division of the company. They gave me five days notice of such.

I was told by a headhunter (to which I didn't believe) that since it was downsizing position elimination and not being fired, that courts wouldn't uphold the non compete/solicitation as my previous employer can't keep me from gainful employment and making a living. Is this true??

Click to expand...

And, of course, you take legal advice from the headhunter? Do you ask your attorney to find you a job?

That part I was pretty sure would still hold-of which I have no problem with.
Thanks.