compete clause is fairly standard in severance packages for key employees. The employer asks the employee to agree not to work for competing businesses, poach clients, or recruit existing employees for a period of time or in a certain geographic area.
In California, Government Code § 12964.5 makes it unlawful for employers to include a non-disparagement clause without clear language that preserves your right to disclose unlawful conduct.
So if you were laid off and signed a separation agreement even before the February ruling, your former employer won't be able to enforce any overly broad confidentiality, non-disclosure, and non-disparagement clauses in your original agreement.
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.
Yes, a non-compete agreement stands even if the company lays you off. Under the Florida Statute, these agreements are enforceable if they protect legitimate business interests.
The agreement must be backed by consideration. The employer must give something of value to the employee in exchange for the agreement. Employees must have 21 days to consider the severance offer, or 45 days if more than one employee is laid off as part of a group lay off.
In Texas, employment is generally at-will, meaning an employee can be dismissed at any time and for any reason, as long as that reason isn't illegal under state or federal law.
disparagement clause generally prevents employees from disclosing certain confidential business information or saying anything negative about their former employer. Confidentiality clauses generally prohibit employees from sharing details of the severance agreement.
A "Resignation for Good Reason" clause allows an employee to resign while still receiving severance benefits if significant negative changes—such as a substantial reduction in salary or job responsibilities—occur within the company environment without the employee's consent.