Considerations for creating a non-compete agreement Check state laws. Each state has different laws and regulations regarding non-compete agreements, and in some states, non-compete agreements may be prohibited entirely. Define the duration. Consider using specific and relevant parameters. Provide a section for signatures.
Non-compete agreements are illegal in California, but some companies still include them in severance packages. If you see one, ask for it to be removed.
It is generally unlawful in California for an employer's severance agreement to state that you may not compete against the employer in a future job.
Provide written request: Send a written request via email or letter to your former employer asking for a copy of the non-compete agreement. By doing this, you will have a record of your request and may be able to use it as evidence if necessary.
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-competes are generally binding. So they are enforceable when an employee leaves the company. It doesn't matter if you're fired or resign. Valid agreements must be reasonable in scope.
Fraud, misrepresentation, duress, or unconscionability are common defenses you can use if you want to void a severance agreement that you already signed.
It is generally unlawful in California for an employer's severance agreement to state that you may not compete against the employer in a future job.
Under case law, non-competes will only be enforceable if they are no wider than reasonably necessary to protect a legitimate interest (e.g. protection of confidential information or customer contacts) and are not contrary to the public interest.
The following are the most common ways to get out of a non-compete agreement: Determine that the terms of the contract do not in fact prevent you from a desired course of action. Recognize when a non-compete contradicts the law. Negotiate a release agreement with the involved parties. Ignore the agreement.