Legal Question in Business Law in California

non-compete clasue

1.I am not sure if I signed a non-compete clause with previous employer, would have been 10 or so years ago. I am sure I did not. Was a general manager. If I did sign something it would have been long after hire date. I did sign a non-disclousre which I honor.

2.Left company and am now employed as salesman for new company (same type of business). Old company is saying I sgined a non-compete clause (heard it through the grapevine). How do I find out what I signed? They will not produce copy.

3. Can I be sued because of my new position? Do I need legal cousel at this point? What can I do?


Asked on 1/19/05, 9:18 pm

5 Answers from Attorneys

Wendy Bemis Law Offices of Bemis & Associates

Re: non-compete clasue

We are currently handling a case just like yours. (Except there really is a non-compete clause).

1. Non-compete clauses are generally not enforceable--especially when signed after the employment begins. They have to be very narrowly tailored to be enforceable. For example, they usually can not restrict competition beyond the county in which your former employer was located; they have to be very restricted in time; etc. Almost all non-compete clauses in California fail the strict standards that are applied. See Cal. Bus. & Prof. Codes � 16600-16607.

2. You can not share your employer's trade secrets. Non-compete clauses which are tailored to prevent disclosure or use of trade secrets can be enforceable.

3. You should be able to request a copy of your personnel file from your former employer. If you need it, you might want an attorney to help you get the file. Personally, I would not hire an attorney unless you do get sued. Attorneys cost too much to hire "just in case." Chances are, if your former employer is thinking of suing you, they have consulted an attorney that has informed them that almost all non-compete clauses in Ca. are not enforceable. If you do get served with a complaint, definately get an attorney within a day to five days of receiving the complaint so the attorney has plenty of time to act on your behalf. (You will also definately ge a copy of the non-compete contract if they take action against you.)

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Answered on 1/20/05, 2:00 am

Re: non-compete clasue

Generally non-compete agreements are NOT enforceable in California. Your circumstance is one that is very likely NOT to be enforceable.

Check out my article on Non-compete agreements at: http://www.legalwarriors.com/contracts.htm

I would be happy to consult with you regarding this issue. Since you are in Simi, my office is not too far.

J. Caleb Donner

DONNER & DONNER

LEGAL WARRIORS�

910 Hamshpire Road, Suite R

Westlake Village, CA 91361

Tel: 805-494-6557

Fax: 805-494-0990

email: [email protected]

website: www.legalwarriors.com

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Answered on 1/20/05, 2:18 am
Donald Holben Donald R. Holben & Associates, APC

Re: non-compete clasue

You first say you do not know if you signed one then say you did not. Whether you did or not, California courts do not like them, however, if reasonable, they can and do enforce them. Need much more info to answer.

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Answered on 1/20/05, 9:02 pm
Daniel Harrison Berger Harrison, APC

Re: non-compete clasue

In California, non-compete agreements are generally unenforceable as against public policy. There are a couple exceptions, such as if you sell your business you can be prevented from starting a new one and competing with the one you just sold. However, generally speaking, your previous employer can't prevent you from working for a competitor, no matter what you signed. By the way, most employees jump around companies within their industry in order to increase their pay. You CAN be prevented from dislosing trade secrets.

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Answered on 1/19/05, 9:36 pm
Daniel King Law Offices of Daniel King

Re: non-compete clasue

you really should talk with an attorney. there are things you should be aware of to protect yourself.

additionally, a properly worded request for the "non-compete," or whatever you purportedly signed, should be sent out on your behalf.

feel free to phone if you wish.

thank you.

daniel king

818 587-9299

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Answered on 1/19/05, 9:50 pm


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