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Non Compete Agreements FAQ In fact, California law makes it unlawful for an employer to require an employee to sign a noncompete agreement. A California employee who has been forced to sign an unlawful noncompete agreement may bring suit against the employer and recover penalties and damages.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
Does my non-compete clause still hold if I leave my job involuntarily? In most cases, the non-compete clause still holds even if you are fired or laid off. However, you may be able to request that your former employer waive the clause. In such circumstances, employers are sometimes more open to waiving the clause.
Out of State Business Doing Business in California In some cases where this occurs, a business owner will draw up a non-compete agreement and specify the agreement was made in another state. This is known as a choice of law provision, which may mean the restrictions, or covenants are enforceable.
Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.