Employment Agreement With Non Compete Clause In Oakland
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Yes, if you have signed one with your employer. However, non-compete clauses are operable only for a reasonable period of time only even if the clause mentions otherwise.
California Business and Professions Code § 16600.5 states that a void non-compete under California law is “unenforceable regardless of where and when the contract was signed.” It also prohibits employers from enforcing a void provision “regardless of whether the contract was signed and the employment was maintained ...
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.
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.
Code §§ 16600, 16601, and 16602.5). The only exceptions are non-compete or restrictive covenants that fall within one of the narrow exemptions authorized by statute, all of which relate to the sale of the goodwill of a business, or of a substantial ownership stake in the business.
California generally bans non-compete agreements “regardless of where and when the contract was signed,” and “whether … the employment was maintained outside of California.” Practically speaking, California prohibits all employers from enforcing these agreements.
Fortunately, it is unlawful for an employer to enforce non-compete agreements in California.
Although non-competes are banned by California law, you can still have robust protections for confidential information and trade secrets. These provisions are critical and should be tailored enough to avoid being considered “de facto” non-competes.
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.
For more than 150 years, California has declared non-compete agreements unenforceable. In 1941, California codified its prohibition on non-competes in California Business and Professions Code sections 16600-16607.
