Andrade was released by WWE over a month ago due to a number of violations of the company’s Wellness Policy. He has made several appearances across different wrestling promotions since then.
Soon after his WWE departure, reports indicated that the former United States Champion was outright released and therefore didn’t have a non-compete clause, but that didn’t turn out to be the case.
After his appearances on the independent circuit and in AEW, WWE reportedly informed Andrade that he can’t work for any other promotion until his non-compete clause expired. The company also made it clear that he would not be paid during the time he was expected to stay at home.
The Wrestling Observer has now shared more details on Andrade’s situation. Their report revealed that new TKO contracts include a clause stating that if a talent is fired for cause or breaches their contract, they face a one-year non-compete. Older contracts had a similar clause as well, but it’s standard now.
In normal cases, when WWE releases talent, the non-compete is just 90 days. But Andrade’s release came after he violated the company’s Wellness Policy, which could mean that he may be forced to honor a one-year non-compete.
Former WWE Superstar and Nexus member David Otunga, who is also a Lawyer, said the following about Andrade’s situation:
“Under this non-compete clause, technically, a talent could sign a contract, WWE could turn around the next day and fire them for no cause, and then say, ‘Hey, we’re not going to pay you for one year and you can’t wrestle anywhere else for one year.’ This is in the contract. This would be enforceable, presuming this contract is valid.
They don’t want talent to take them to court and challenge this because a judge would likely rule this invalid.
The fact that you’re preventing somebody from working to support themselves in their given field for an entire year and you’re not compensating them… I don’t know how they could enforce this.
If he were to take this to court, I think a judge is very likely to rule in his favor and just throw out the entire clause in the contract. You can’t prevent somebody from earning a living for an entire year.”
