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Under New York law, the general rule is that a non-compete clause will not be binding if the employer fires you. As with most things, though, there are exceptions to the general rule. The most significant exception to be aware of is if the employer offers you severance benefits in exchange for signing the non-compete. Under those circumstances, the non-compete will continue to be binding as long as you are receiving the severance benefits.

The contract you voluntarily signed will specify how layoff affects your noncompete restrictions.

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Q: Is a noncompete clause binding if the company lays you off?
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