Employment Lawyers for Providence, Rhode Island

Whether a non-competition agreement remains enforceable if you’re terminated without cause depends on both the language of your contract and the law of the state that governs it. Termination without cause doesn’t automatically make a non-compete void, but courts often treat it as a factor in deciding whether enforcement is fair. Courts generally apply a “reasonableness” test to non-competes. To be enforceable, the restrictions must be narrowly tailored in duration, geographic scope, and the type of work restricted, and they must protect a legitimate business interest like trade secrets, confidential information, or customer goodwill. If you’re let go through no fault of your own, many courts are skeptical of an employer’s claim that preventing you from working elsewhere is necessary. For example, judges may ask why an employer who voluntarily ended the employment relationship should still be able to limit your ability to earn a living in your field. The outcome varies widely by state. California, Oklahoma, North Dakota, Minnesota, and Washington, D.C. prohibit most non-competes outright. Massachusetts allows them but requires employers to pay “garden leave” or other compensation during the restricted period, and generally doesn’t allow enforcement against employees who were laid off or terminated without cause. Illinois and Colorado enforce non-competes only if income thresholds and notice requirements are met. In New York, the law isn’t settled: some courts uphold non-competes even after termination without cause if they’re otherwise reasonable, while others strike them down as unfair. Texas courts often enforce non-competes if they meet statutory requirements, regardless of whether the employee resigned or was terminated without cause. The Federal Trade Commission tried to ban most non-compete agreements in 2024, but a federal court struck down the rule before it took effect, and the FTC has since abandoned its appeal. There’s no federal ban in place today, although the FTC is still targeting abusive non-compete practices on a case-by-case basis. The exact wording of your contract also matters. Some non-competes say they apply only if you resign or are terminated for cause. Others apply regardless of how the employment ends. If your agreement doesn’t address termination scenarios, a court will fall back on state law and the reasonableness test. If there’s no compensation provided during the restricted period or if the restrictions are overly broad, you’ll have a stronger argument that enforcement is unreasonable. Non-compete agreements turn on the details of both the contract and the law in your state. The emplyment law attorneys on Contracts Counsel can review your agreement and advise you on whether its terms are enforceable given your specific circumstances.

Have you asked about receiving the promised bonus? It may just be late. I would talk to the employer before quitting. And, yes, you must still give the 30 days' notice or you will be in breach. Also, realize, if you quit you may not be entitled to the bonus. I would have to see the contract you signed to actually know what you are entitled to or not.

The rules for the salary basis of pay is governed by a federal law called the Fair Labor Standards Act. It allow an employer to deduct an entire day's pay if an entire day of work is missed. If any part of such a day was worked at all, then a full day's pay is required by law. HOWEVER, there is an exception under which partial day deductions for partial day absences is allowed if an only if the absence is for Family and Medical Leave Act leave. I'm not licensed to practice law in Texas: if there is any peculiar spin on it through state law, perhaps a Texas attorney will chime in. It is ordinary for an employer to substitute PTO for salary pay when a whole day is missed.

Hi, Your employee handbook may have the answer to this and is worth a review with a qualified attorney. Attorneys skilled in intellectual property may be able to give you more insight as well.

When you’re hiring an employee who will have access to sensitive business information, a well-drafted Confidential Information Release Agreement (often structured as a Non-Disclosure Agreement or NDA) is one of the strongest safeguards you can put in place. The enforceability of the agreement depends on how precisely it’s written, so each section should be thought through carefully. Definition of Confidential Information The agreement needs a definition that’s broad enough to cover your key assets but specific enough that a court will enforce it. A good approach is to use examples followed by a catch-all phrase. For example, you might list customer lists, financial records, pricing models, marketing plans, source code, prototypes, supplier agreements, and employee data, and then add a general clause covering “any other information, whether written, oral, or electronic, that is not generally known to the public and provides the company with a competitive advantage.” Many agreements also provide that information is confidential if it’s marked as such or if a reasonable person would recognize it as confidential under the circumstances. Employee Obligations The employee’s duties should be spelled out in plain terms. They must not disclose the information to anyone outside the company without written approval. They should only use the information as needed to perform their job and for the benefit of the company. They also need to take reasonable precautions to protect the information, such as safeguarding passwords, not discussing matters in public places, and securing documents just as they would their own personal records. Exclusions from Confidentiality An agreement that doesn’t carve out reasonable exclusions is more likely to be struck down. Standard exceptions include information that is already public, information the employee had before joining the company, information developed independently without relying on the company’s resources, information legitimately obtained from another source, and disclosures that are required by law or court order. If disclosure is legally required, the employee should be obligated to give the company prompt notice so it has a chance to intervene. Duration of Obligation The confidentiality period depends on the nature of the information. For trade secrets, the obligation should last as long as the information qualifies as a trade secret. For other sensitive but non-secret information, it’s common to set a post-employment period of two to five years. Courts tend to find these durations reasonable. Return or Destruction of Information When employment ends, the agreement should require the employee to return or destroy all materials containing confidential information, whether in paper or digital form. It’s also wise to require the employee to confirm in writing that they’ve returned or deleted all copies, including notes and stored electronic files. Remedies for Breach To protect your position in the event of a violation, include provisions for injunctive relief, damages, and attorney’s fees. Injunctive relief allows you to seek a court order stopping the misuse immediately, without waiting for a damages trial. Attorney’s fee provisions are enforceable in many jurisdictions and can deter breaches, though you’ll want to confirm enforceability under your state’s law. Whistleblower Immunity Notice Federal law requires that you include specific language from the Defend Trade Secrets Act of 2016. This notice protects employees from liability if they disclose a trade secret in confidence to a government official or attorney for the purpose of reporting or investigating suspected legal violations. If you leave this out, you lose the ability to seek exemplary damages or attorney’s fees in a federal trade secret case against that employee. General Provisions Rounding out the agreement with standard contract clauses improves enforceability. Common provisions include governing law (which state’s law applies), severability (invalidating one clause doesn’t void the entire agreement), no waiver (failure to enforce once doesn’t waive rights later), and entire agreement (confirming that the NDA overrides prior understandings about confidentiality). Get Professional Help Protecting Your Business Protecting confidential information is vital when hiring new employees, and the strength of your agreement depends on getting the details right. The business attorneys on Contracts Counsel are available to draft, review, and tailor your confidentiality agreement so it’s enforceable in your state and aligned with your company’s needs.