In California, Is a Non-Circumvention agreement signed as an employee be enforceable if the employer lays off said employee?
As an employee I was presented and signed a Non-Disclosure & Non-Circumvention agreement. I was recently told that Friday July 29, 2022 is my last day solely because the employer can no longer afford my position. They have also presented the idea of hiring me as an independent contractor. In the proposal, my current employer reminded me of the signed agreement. I would like to know if I sign the agreement for contracted work, is the Non-Circumvention agreement still valid since the Employer Employee relationship has ceased at no fault of the employee?
1 Attorney answer
You will need to talk to someone in California, specifically. I am not licensed in your state. Generally, it is possible for terms of an agreement to service termination of other aspects of the agreement. This comes up in employment contracts all the time. The answer to your question most likely exists in the text of your agreement. Take that to a local attorney - aside from the text in the document, there may well be case law in California that would set an upper limit on how long such restrictions can last.