Can My Employer Fire Me for Refusing to Sign a California Noncompete Agreement? It is unlawful for California employers to fire employees who refuse to sign non-compete agreements.
A noncompete is unenforceable if it restricts an employee's ability to exercise their rights under federal law. No employer may enter into a covenant not to compete or a covenant not to solicit with any employee. Existing noncompetes are void and unenforceable, including out-of-state noncompetes.
The enforceability of non-compete agreements always depends on the facts of the case. If you violate the terms of the agreement, your employer may seek injunctive relief or monetary, punitive, or compensatory damages.
Current employees can refuse to sign, and a business may decide to terminate an employee who refuses to sign.
Noncompete agreements are void and prohibited by law in 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.
Terminating an employee for the employee's refusal to sign an unenforceable non-compete agreement is unlawful and can support a lawsuit for wrongful termination in violation of public policy. Further, if you decided to sign the document, any attempt to enforce its provision would not be successful. That is the law.
Noncompete agreements are void and prohibited by law in California.
Under California Business and Professions Code Section 16600, unless you were an owner of the business, any “non-compete clause” which forbids an employees who is fired or resigns from working for a competitor or starting a competing business is illegal and unenforceable.