On February 21, 2023, the NLRB issued a decision stating that the language of typical Confidentiality Clauses and Non-disparagement Clauses are illegal because they infringe on an employee's right to organize (form a union) or help other employees organize.
On January 1, 2024, California introduced a new statute that makes non-competes unlawful “regardless of where and when the contract was signed.” This law has produced new uncertainty for employers around the country, and, predictably, litigation has taken off.
Non-waivable claims: Certain claims, such as workers' compensation and unemployment insurance claims, cannot be waived by the employee. No prevailing party and attorney's fees: Ensure that the agreement does not include provisions that would allow either party to claim attorney's fees if legal disputes arise.
While no mandate requires employers to provide severance under California law, SB 331, signed into law in October 2021, introduced important provisions: Time to Review: You have a minimum of five days to review the severance agreement.
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.
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.
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-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.
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.
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.