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Although non-compete agreements are unenforceable in California, confidentiality agreements are enforceable. This means that when you leave your job with Big Company A, and go to work for a competitor, you cannot take any documents, technical information or specifications, plans or specialized knowledge with you.
The short answer to whether non-solicitation agreements are enforceable in California is maybe. As a general rule, an employee is bound by a reasonable contract that prohibits an employee from soliciting former clients or employees of the employer.
Non-solicitation clauses that are clear, carefully drafted, and suitably retrained in temporal and spatial terms, are often enforceable. An appropriate clause will serve the purpose of protecting the employer without unduly compromising a person's ability to work in their industry.
In those situations, you should refrain from disclosing that you have entered into an NDA or are even in negotiations with the other party (i.e., the first rule of this NDA is we don't talk about this NDA). NDAs may have time limits that provide that they no longer apply after some fixed period.
Escaping Nonsolicitation AgreementsDon't sign.Build your book independently.Carve out pre-existing relationships.Require for cause termination as the trigger.Provide for a payoff.Turn clients into friends.Don't treat clients as trade secrets.Invest in your own business.
Escaping Nonsolicitation AgreementsDon't sign.Build your book independently.Carve out pre-existing relationships.Require for cause termination as the trigger.Provide for a payoff.Turn clients into friends.Don't treat clients as trade secrets.Invest in your own business.
Non-Solicitation Agreements Similarly, a non-solicitation agreement can also be enforced for a much longer period of time. This type of agreement simply prohibits the employee from contacting or soliciting clients that belong to the business where they were previously employed.
Nonsolicitation agreements. A nonsolicitation agreement restricts an employee from soliciting the business of specific customers of the employer, typically within a set time period. Nonsolicitation agreements are almost always void and unenforceable in California.
Non-disclosure agreements (NDAs) and non-compete agreements, also called a non-competition agreement or covenant not to compete, have distinct purposes. Both documents, however, are restrictive covenants that limit what an employee can say or do, and (often) where they can and cannot work.