Non-compete agreements generally exist to protect a company’s legitimate business interests in the event an employee decides to leave to work for a competitor, but what if the employee is laid off through no fault of their own? Should a non-compete agreement still keep them from obtaining employment if their former position no longer exists? This is the question Dr. Crocker asked after he was laid off from his position at Greater Colorado Anesthesia (GCA) as the result of a merger.
When Crocker got another job with a similar company in the same geographic area, GCA sued him for breach of contract. The company pointed to the non-compete clause in Crocker’s employment contract, but Crocker responded by suing his former employer, saying the non-compete agreement was overly burdensome by preventing him from obtaining valid employment as a doctor. Continue reading