Is it to resign? Suppose he does – and it says that the non-competition clause is still in effect, even if you are fired – the next question is: is it legal? Here, too, the answer is this: that is what matters. If your dismissal is due to a fault on the part of the employer – discrimination, illegal activity of the employer or similar misconduct – most courts have ruled that a non-competition clause is no longer applicable. The unlawful conduct of the employer was not part of the worker`s expectation at the time of acceptance of the non-competition clause. If the reason for your dismissal is employee misconduct – presence, poor performance or similar problems – then the fact that you were fired probably won`t be as significant. Nevertheless, the courts may be less concerned about imposing a non-compete clause if it is the employer who decided to end the relationship, not yours. In any contractual agreement, both parties must give and receive something valuable, also referred to as consideration. The Alabama courts have found that the offer of a first job constitutes sufficient consideration or benefit to the worker, in exchange for a consent not to compete with the employer in the event of termination of the employment relationship. The same applies to a contract signed after the start of the employment relationship and if the terms of the relationship change, for example. B where a new remuneration contract is provided for.
That is what matters. The courts` approach to non-competition clauses varies considerably from state to state. Some states are very keen to impose alliances to avoid competition and will actively rewrite those that are too broad geographically or temporally to make them easier to implement. Other public courts have taken a very negative view of non-compete agreements and have imposed only those that, geographically and over time, were clearly reasonable and are supported by substantial counterparties (the payment of money in return for the agreement). This approach varies from state to state and often depends on the facts of each case. The employer who wants a non-competition clause may, in some cases, pay what is called a „consideration“: an additional compensation in exchange for the agreement of the worker or the seller or any other non-monetary benefit, such as for example. B a change in professional obligations or responsibilities. However, the need to do so may depend on the law of your state. Typically, your employer does not have to give you additional financial compensation, but this can have consequences if the employer tries to enforce the agreement. Some states require the payment of consideration, while others see it only as an important factor that courts must consider when deciding whether to enforce the agreement. If your task encouraged browsing the phone book and cold calling people and asking them to buy your product, this would probably not be a protective interest, because a phone book is something that is accessible to the public. .