If an employee is given a 1 yr. definite term of employment?

Question

however, the employer is able to terminate the employee for cause at the employers own sole discretion, does this constitute consideration for a noncompete or is it illusory?

I should also add that this term employment was given to the employee along with a noncompete after a year and half of working. My state laws say that additional consideration needs to be given. In my state the law says that continued employement is not consideration. When the employer was on the stand he said he had the right to terminate the employee anytime he wanted. He also admitted on the stand to not understanding his contract. The employee also had emails as evidence that the employer was threatening the employee. His threats stated he could fire the employee wit or without cause, he could sell all the employees accounts to another agency and leave the employee with nothing, and that he could change his contract whenever he wanted. He also told the employee if he tried to leave the company he would sue him under the non compete. When the employer admitted to not understanding his contract and refusing to answer questions the judge yelled at him.

Answer 1

The simple act of employment is sufficient consideration. However, non-competes must meet equitable & reasonability tests in addition to their literal language. A sympathetic judge may rule that it would be inequitable to enforce a non-compete after an employment that lasts just a day or maybe a week & did not result is disclosure of trade or customer confidences. Depends on your state's laws, the specific unique facts, & how the judge feels that day.

Answer 2

It is neither. If it were noncompete, there would be a non competition clause in the agreement something to the effect that the employee would not take employment within that field, for a certain time, within a certain area. What you have here is a basic employment contract. NOT an At Will employment. If you quit, you may have to pay damages. Read the agreement carefully. This is not an illusory agreement.