Bentham Locke P.C.

A Delaware court just ruled that an employer who fires someone “for cause” might accidentally destroy their own ability to enforce non-compete agreements.

Specifically, the company terminated an employee for allegedly violating restrictive covenants, which automatically forfeited his 300,000 equity units. However the court held that this forfeiture of his equity units eliminated the only consideration supporting those same covenants, making them unenforceable.

The more: sometimes getting fired for cause is exactly what you need to escape your non-compete!