Working for a competitor company or competing individual. Starting a company that offers the same products or services. Developing competing products or providing competing services.
A noncompete agreement has the ability to threaten your future job prospects, prohibit you from using your hard earned skills and compromise your livelihood. Fortunately, it is unlawful for an employer to enforce non-compete agreements in California.
Under this new law, noncompete provisions are unenforceable "regardless of where and when the contract was signed," and employers are prohibited from attempting to enforce such noncompete provisions "regardless of whether the contract was signed and the employment was maintained outside of California."
QUICK SUMMARY: In California, noncompete agreements that are intended to prevent or restrain an employee from engaging in another lawful possession, trade or business during their employment have long been unenforceable.
Consider Legal Action. If negotiations do not yield a satisfactory result, you may need to consider legal action. This could involve filing a lawsuit to challenge the enforceability of the non-compete agreement or seeking a court order to invalidate the agreement.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
Non-Competitive Activity at New Employer: One of the most straightforward ways to overcome a noncompete is by ensuring that your new role with a different employer is in a non-competitive capacity. If you're not engaging in activities that directly compete with your former employer's business, you may be in the clear.
Noncompete agreements are typically deemed illegal under the California Business and Professions Code unless the agreement has been made between two business owners or partners.
Challenge the agreement in court—if you believe the non-compete agreement is unenforceable or the terms are not reasonable, you can challenge it in court.