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Real question: if the company one has an NCA with goes insolvent, does the NCA matter? Who would enforce it? Presumably, if somebody picks up the employees in
by InitialLastName 8y ago
Real question: if the company one has an NCA with goes insolvent, does the NCA matter? Who would enforce it? Presumably, if somebody picks up the employees in a buyout, those would now be said company's employees and the company would be on the hook for the "Pay for the length of the non-compete" bit.
- dragonwriter 8y ago> Real question: if the company one has an NCA with goes insolvent, does the NCA matter? Yes, an insolvent company still exists. If it is dissolved and it's interest in the NCA wasn't transferred (either because noone wanted it or it wasn't legally transferrable), then it doesn't matter, but mere insolvency isn't the same (in fact, if it can collect money for violations, insolvency may lead it to be more aggressive.) > Who would enforce it? The insolvent firm itself, which may be effectively run by (or for the benefit of) its creditors.
- woolvalley 8y agoYou could put that too, the non-compete goes away if the firm goes insolvent / can't pay in liu of insurance.