Non Complete Agreement w/non disclosure of important information

Director had all employees sign a non compete agreement just before a company was sold (Director knew about the sale, employees did not). Result is that employees cannot work for the new owner because of this non compete agreement. Is this agreement enforceable if the Director knew the company was about to be sold but did not disclose this information or it's implications to the employees prior to having them sign the non-compete?

1 answer  |  asked Mar 16, 2016 12:14 PM [EST]  |  applies to Ohio

Answers (1)

David Neel
Interesting question. Short answer is that consideration for the non-compete is continued employment. There might have been a failure of consideration (continued employment) rendering the non-compete invalid. Situation also gives rise to potential fraud/misrepresentation claims/defenses.

posted by David Neel  |  Mar 16, 2016 2:48 PM [EST]

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