Legal Question in Employment Law in Illinois
General Release and Severance Agreement/Non-compete issues/whistle-blowing
In 7/03 I was presented a Gen Release and Sev Pay Agree't from my prev employer in IL. I was told my position as VP Ops was being eliminated and I was being laid off due to the companies financial situation. I was offered 4 weeks severance. I agreed to take the severance.
Immediately prior to my ''lay-off'' I discovered one of the male Sr Mgt was sexually discriminating against several female subcontractors. Instead of going to the CEO or COO, which I probably should have, I contacted the company attorney (via email) to ask him his advice on how I should proceed. He never responded. Several days later I was ''laid off.''
I have been recently offered a different position (VP Sales) with a competior (in MI) of my previous employer. My previous employer sent me an email stating that I am bound by their agreement and they will not agree to waive their rights under the agreement. My previous employer threatened to sue me, in a statement made to my new potential employer (the competitor) if I accepted the offer.
What recourse do I have? Does the non-compete portion hold up in MI?
2 Answers from Attorneys
Re: General Release and Severance Agreement/Non-compete issues/whistle-blowing
Michigan courts may uphold a non-compete agreement if the agreement meets certain criteria. First and foremost it must be reasonable. In order to determine if the non-compete is reasonable or would encompass employment in Michigan, I would need to review it. I provide free initial consultations so if you would like to discuss this in further detail call me at 586-979-7302. Good luck.
Re: General Release and Severance Agreement/Non-compete issues/whistle-blowing
Based upon your narrative, you appear to have no whistleblowing claim.
No compete agreements are generally disfavored in Michigan and not often enforced against laid-off employees. Those that are enforced are mostly by injunction ordered by a court of equity where issues of fairness are considered.
If you want to know whether your particular non-compete will keep you from a new job in Michigan, you can call me @248-680-1133.
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