Non Compete Clause For Employees
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FAQ
What Voids a Non-Compete Agreement? Voiding a non-compete contract is possible if your employer promised you something in exchange for signing the agreement and did not intend to fulfill this promise.
Covenant Not to Compete. You agree that at no time during the term of your employment with the Company will you engage in any business activity which is competitive with the Company nor work for any company which competes with the Company.
- The two most common settings for legitimate non-competition agreements are the sale of a business and an employment relationship. When a non-compete agreement is ancillary to the sale of a business, it is enforceable if reasonable in time, geographic area, and scope of activity.
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.
The court may find a non-compete agreement invalid because of ?oppressive restrictions? or if bad faith was involved in its execution. If the court finds the non-compete agreement was seriously unfair, the court will not enforce it.
