Legal Question in Employment Law in Florida

Company Dissolved and Non-Compete Agreement and Withholding Contractors Last Pay

I signed an employee non-compete agreeement stating that it is enforcible for one year after employment separation. The company dissolved the employee relationships (''went out of business'')jover a year ago. I am home-based and work with the same company via internet. (I pay my own taxes, etc.) The company was to provide software and marketing support and phone reimbursement in exchange for 50/50 split. There is no reimbursements and support is very limited. In addition, the company has made a habit of not paying contractors (who I've placed on assignment) their last payments once it is known that the project is completed. (This has happened 3 times, totaling over $15k.) The contractors do have signed agreements in place. The company avoids the contractors calls. One day, I could very well be in the group with the contractors, especially after there was a 2-weeks delay with one of my checks being lost in the mail (it was overnighted). Am I still bound by the non-compete in any way if I choose to continue not under the company name? There has not been any other agreement signed between me and the company. Also, what action can the contractors take?


Asked on 6/26/03, 7:06 pm

1 Answer from Attorneys
Keith Stern Shavitz Law Group

Re: Company Dissolved and Non-Compete Agreement and Withholding Contractors Last

Anyone who signs a non-compete agreement that is valid in scope and duration is bound by that Agreement for the specified term, which cannot exceed 2 years. Accordingly, the only issue relevant to the enforceability of the non-compete is whether you signed it and whether it governs a reasonable geographic area--S. Florida or other specified proximity. It cannot be so broad as to cover the entire Country. If you'd like further assistance, please feel free to contact me at (305) 810-2887.

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Answered on 6/27/03, 8:27 am


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