Can a general release override the terms of a Non-compete agreement?

The non-compete agreement states employement will continue indefinitely until terminated by either party with two weeks notice.

I was laid off without any notice nor was payment made for the two weeks.

The general release states I will get paid for the two weeks but there is no consideration absent of the execution of this agreement.

Is the non-compete still valid if I sign the general release?

1 answer  |  asked Sep 25, 2009 11:42 AM [EST]  |  applies to South Carolina

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Answers (1)

Neil Klingshirn
A general release by your employer of the claims it may have against you, coupled with its waiver or termination of its right to prevent you from competing against it, would probably free you from the restrictions of the non-compete. However, if the release is your release of claims against the employer without a release of the employer's claims against Similarly, if the release is one by your employer, but it only releases you from claims that your employer has at that point in time without relieving you of your obligation not to compete, your employer would have a new claim against you when you began competing against it, which would not be waived by the earlier release. I those events, your non-competition obligations would remain.

Both the non-competition agreement and the general release are contracts. They say what they mean, so the best way to understand them is to read them carefully. If their meaning remains unclear at that point, consult an employment lawyer.

posted by Neil Klingshirn  |  Sep 27, 2009 07:48 AM [EST]

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