It is generally unlawful in California for an employer's severance agreement to state that you may not compete against the employer in a future job.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
These agreements don't even have to be signed to be deemed problematic, the board noted: If the firm merely presents employees with agreements that contain broad language requiring confidentiality or nondisparagement, it is engaging in an unfair labor practice.
When settling a lawsuit or pre-litigation disputes, parties sometimes insist on including non-disparagement clauses in their settlement or severance agreements. Broadly speaking, these clauses prevent one or both parties to the agreement from making negative comments about each other.
Non-competes are generally binding. So they are enforceable when an employee leaves the company. It doesn't matter if you're fired or resign. Valid agreements must be reasonable in scope.
Non-compete agreements are illegal in California, but some companies still include them in severance packages. If you see one, ask for it to be removed.
Since non-disparagement agreements are considered to be “restrictive covenants,” Florida law states that they must be necessary to protect a company's legitimate business interests.
Fraud, misrepresentation, duress, or unconscionability are common defenses you can use if you want to void a severance agreement that you already signed.
Subject to the Protected Activity Not Prohibited section, Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.
Example: The following non-disparagement clause would be unlawful under Government Code section 12964.5: “Former Employee agrees that they will not make any statement, directly or indirectly, verbally or in writing, that would cause harm or embarrassment to the Company.” claims in a separation agreement?