You have a very complicated matter. Tennessee is an at-will employment state. In light of this, Tennessee Courts are very skeptical against Non-Competition Agreements because if an employer can terminate you for almost any reason, then as an opposing force, an employee should be able find work. However, in your case it is not whether or not there is an agreement, but the operation of its terms To the extent the agreement provides for a prohibition against competition due to termination or if you quit, the parties did agree that you would not compete. Yet implicit in your obligation not to compete is the employer's obligation to pay you for your services rendered. Therefore, there is the possibility that you could be free of your noncompete. Still, such a determination will rely on the exact terms of the agreement and the reasons for termination.
This is a general answer to a hypothetical scenario and is not intended nor does it create the attorney-client relationship. You should contact an attorney to go over your specific fact scenario and what rights you may have.
Answered on Aug 29th, 2011 at 2:39 PM