The organizations that oppose a non-compete ban in the United States include US Chamber of Commerce, American Medical Association, the Restaurant Law Center, members of US Senate, and the Antitrust Law Section of the American Bar Association.
While some states automatically make non-compete agreements invalid if a worker is terminated “without cause,” laid off, or is part of a reduction in force, many others do not. Even if a lay off does not automatically invalidate an employee’s non-compete agreement, other circumstances may render the non-compete agreement invalid.
A non-compete agreement or a non-compete clause prohibits employees from working for their employers’ competitors within a certain geographic area, for a certain period of
In several states, enforcement of void non-compete agreements is a misdemeanor, punishable by fines and administrative penalties.
A Texas federal court recently entered an injunction against a healthcare staffing company that works with federal agencies ordering it to (1) return information brought to it by a new hire from his previous employer and (2) not to use such information in any way to submit bids on any staffing contracts with federal agencies.
Texas employees who refuse COVID-19 vaccine may be terminated. If they have a non-compete agreement with their employer, assuming the agreement meets the appropriate legal requirements, i.e., among other things, is reasonable, has geographic, scope, and term restrictions, and is supported by consideration, the fact that the employee was terminated or quit over the COVID-19 vaccine requirement, is not going to make the agreement invalid.