Legal Question in Employment Law in California
Clause against joining customer/competitor
Hi, In the recent salary revision letter given by my employer, they have asked all employees to sign an agreement which reads as below. Please let me know if it is legally binding in the state if California. Thanks.
I agree that for a period of six (6) months following the termination of my employment for any reason, I will not:
a. accept any offer of employment from any Customer, where I had worked in a professional capacity with that Customer in the twelve (12) months immediately preceding the termination of my employment;
b. accept any offer of employment from a Named Competitor, if my employment with such Named Competitor would involve me having to work with a Customer with whom I had worked in the twelve (12) months immediately preceding the termination of my employment.
2 Answers from Attorneys
Re: Clause against joining customer/competitor
On its face, this agreement would appear to violate California Business and Professions Code, Section 16600, which states, "Except as provided in this Chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void."
Cases have held that employers may not fire employees who refuse to sign such contracts.
You may wish to consult with an experienced employment law attorney, to review the specifics of your particular situation before deciding what to do.
Re: Clause against joining customer/competitor
Binding? Probably not. If you are fired or otherwise retaliataed against for failure to sign, feel free to contact me to discuss your rights and remedies at that time.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
