I have a one year covenant not to compete from former employer. . Are the covenants binding if you are laid off?

It depends on the terms of the agreement you signed, and also depends on the scope of the non-competition agreement. Even though the terms may be "binding," they may not be enforceable if they are not reasonably necessary for the protection of your former employer's goodwill and have the effect of preventing you from earning a livelihood. You should consult an attorney to discuss the specifics of the situation. The foregoing is not to be construed as legal advice.