Legal Question in Business Law in California

No competition law in California

I do executive protection, and in our contract it states that we cannot pursue or try to get a current ''client'' as our own, except two years after we quit.

Is this legal? Meaning, we cannot be competition for our business until two years after the day we quit?

Thanks


Asked on 11/15/06, 11:22 am

3 Answers from Attorneys

Roy Hoffman Law Offices of Roy A. Hoffman

Re: No competition law in California

Covenants not to compete are legal providing they are not too broad. From the facts given, and assuming you signed an employment contract containing that provision, the provision is probably legal. If the provision in your contract prevents you from competing anywhere in California, or prevents you from seeking any employment by others who are not currently clients of your employer, it would probably be held to be invalid.

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Answered on 11/15/06, 1:51 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Re: No competition law in California

The agreement you describe is probably legal, though it may be written in such a way as to make it invalid.

I disagree with your statement that you "cannot be competition for" your employer after you leave. The fact that you cannot lure away your employer's clients does not prevent you from finding new clients, some of whom may currently be protected by your employer's existing competitors.

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Answered on 11/15/06, 2:31 pm
Terry A. Nelson Nelson & Lawless

Re: No competition law in California

You signed the agreement, you break it and your word at your own risk of being sued. That's what contracts and policies are for, to confirm what people 'agree' to. Whether that suit would be successful would depend upon all the facts. No advice in the world, other than 'don't compete', is risk free. Now, if you want to consult and discuss how far you can go, what you can do, etc. reasonably safely, feel free to contact me.

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Answered on 11/15/06, 5:17 pm


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