Owner lied about closing company

[debbpurdy]

I was let go from my job. The reason given by the owner was he is closing the company. I have this in writing (via text). I \have a contract saying that I will not approach any clients or other employees for 1 year after I leave the company. Is this still valid if the the company is closing.

I also have heard from the rumor mill the owner decided not to close. Where does this leave me as an employee who was told that is why they were let go? Where does that leave me with the contract about contacting companies clients.

 

[army judge]

I was let go from my job. The reason given by the owner was he is closing the company. I have this in writing (via text). I \have a contract saying that I will not approach any clients or other employees for 1 year after I leave the company. Is this still valid if the the company is closing.

I also have heard from the rumor mill the owner decided not to close. Where does this leave me as an employee who was told that is why they were let go? Where does that leave me with the contract about contacting companies clients.

I suggest you consult a contracts, labor law, or employment law attorney to have him or her review your "non-compete contract".
Once he or she has reviewed the document, advised you accordingly, you can then decide what could do.
If you were terminated, rather than resigned of your own accord, that can often change the non-compete.
Again, you require real legal advice from your own attorney.
Generally speak, in most states, non-compete clauses are unenforceable because you are denied to pursue your profession, and in your case, you were released for business reasons, and the contract usually fails for lack of consideration.
Again, have it reviewed by an attorney in your county, get a written opinion, and act accordingly.
Usually such consultations run between $200 to $500, give or take.
The letter is a lawyer's written LEGAL opinion.
If you act and then are sued, you can waive your lawyer's written legal opinion as a valid defense.

 

[Betty3]

In NJ noncompetes will be enforced if they are reasonable under all circumstances. You need a contract or employment law attorney to read the noncompete - he/she should have a good idea what the courts in the area consider reasonable. Also, your situation is a little different in that you were let go & didn't quit.

 

[Michael Wechsler]

Two issues here:

1) What you asked - is this non-compete agreement no longer enforceable because the owner said he was closing the company (but now is not)?

Yes - if valid and enforceable, simply saying an intention to close a company doesn't not change the nature of the non-compete and your relationship with the company. What if he said he was selling the company but decided against doing so? It doesn't matter. Unless there is some type of agreement where there was an exchange of value for the release from the non-compete agreement, the discussion is just irrelevant conversation.

2) What is the extent of the coverage of the non-compete agreement?

Impossible to say without seeing the agreement and understanding the nature of your employment. There is a general legal restriction against undue hardship being placed over a person's ability to find employment. But this is a complex question to answer, depends upon the state and you did not ask that question. As I'm guessing that we'll assume question 1 is answered the obvious way it should be, the second question would be about how it affects you. And with that legal question, I have to agree with my colleagues that only a proper legal consultation with and review by an employment attorney would be able to give you an idea as to the extent of the non-compete agreement's enforceability. Good luck.