Complaint for Injunction - Covenant not to compete
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FAQ
The simple answer is that if you violate a non-compete agreement that is legally valid and enforceable under state law you may end up having to pay money to your former employer.In addition, the employer can also file a lawsuit against you for both money damages and an injunction.
In California, however, covenants not to compete are almost always not enforceable. California state law says that a covenant that restrains someone from engaging in a lawful profession, trade, or business is void.
In other words, non-compete agreements are not enforceable in California.Employees can void any non-competes that require a court outside of California to decide disputes. In other words, the company cannot enforce an employee's non-compete agreement in a state that allows these agreements.
It is a threat letter from a lawyer. The threat is that if you do not cease and desist (in layman's terms stop) doing something like working for a competitor your former employer will sue you. Most of the time, the matter ends there. Often the parties can work things out short of legal action.
Courts consider several elements when determining the reasonableness of a covenant not to compete, including (1) the time and territory encompassed by the covenant, (2) the territory in which the employee worked, (3) the area in which the employer operated, (4) the nature of the business and (5) the nature of the
The seller's ability to compete. The seller's intent to compete. The seller's economic resources. Potential damage posed by the seller's competition. The seller's expertise in the industry in question.
Voiding a non-compete contract is possible in certain circumstances. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
Generally, if you violate a valid and enforceable non-compete agreement, it is likely that your employer will file a lawsuit against you.In very rare cases, the court may prevent you from working for a competitor for the duration specified in the non-compete.
The value of a non-competition agreement is represented by the present value of the cash flows that would be lost if the covenanter were to compete, adjusted for the effective probability that the covenanter would compete, and compete successfully.