Legal Question in Business Law in California

Re: Non-Compete Agreement/Discrimination

A noncompete clause is only valid in California if you are selling a business in which customer good will is included in the purchase price. Consult an employment law attorney on your other questions.

Re: Non-Compete Agreement/Discrimination

Unless you own equity in the company non-compete is not enforceable in california. I would say you also potentially have a discrimination case.

Re: Non-Compete Agreement/Discrimination

Your facts certainly make an argument for a discrimination case that would be of interest. It is unusual to have evidence of discriminatory motive be presented in a business meeting as 'bad things'. Contact me to discuss this if interested in pursuing. You shouldn't worry too much about a non-compete in CA, but it needs to be reviewed before I can give you an educated opinion that you can rely upon. They can be enforced under some circumstances, but probably not yours.

Re: Non-Compete Agreement/Discrimination

Your facts don't say much about the 'non compete' you're concerned about; indeed, I think you only mention it for the first time in your final sentence. However, whatever it says, I can give you a general answer that would cover 95%+ of conceivable situations.

In California, any agreement by which someone is restricted fro engaging in a lawful occupation or trade is, with limited exceptions that don't appear to apply to you, is void to the extent of the restriction. I believe the code sections are Business and Professions Code 16601 and 16602. (I'm answering from home and I don't have the B&P Code here).

Please note that there is another significant California statute that needs to be understood and applied alongside the B&P sections freeing workers from contractual restraints on competing with the former employer. These are the provisions of the California version of the Uniform Trade Secrets Act, Civil Code sections 3426 et seq. (UTSA). The UTSA makes it illegal for a former employee to utilize trade secrets of a former employer. This doesn't mean you have to do a mental "core dump" or get amnesia when you leave and start your own business, but it does mean you can't take your Rolodex (or, much worse, the boss's) or download all the sensitive files with customer information onto your personal laptop or to DVDs the day you depart.

You may have been discriminated against, but unless you want to devote the next 36 months of your life to advancing the cause, my humble suggestion is to forget this and be really, really focused on doing a terrific job of competing with these turkeys at what you do well.

If I have not covered any aspect of what's troubling you about moving ahead with your next opportunity, please contact me with additional questions, and assume it's gratis until further notice. Best of luck to you and your new family.

Re: Non-Compete Agreement/Discrimination

Answers to your questions:

Will a non compete hold up in CA? Answer: Based upon the facts you have provided, the answer will be likely no. Noncompetes are narrowly enforced in California, and not only must they be in writing, they must have very limited, reasonable time and distance restrictions. Any typically, they are only enforceable against persons who owned equity in the company and/or were occupying very high level positions. For example, an employer could not compel a secretary not to leave and work for a competitor.

This doesn't mean that you can leave and use your employer's proprietary information and/or trade secrets in your new venture. That would be a different issue.

Your other question: Is this discrimination? Answer: Based upon the facts you presented, most likely, yes. You may want to seek out the advice of a qualified employment litigator.

We are business litigators, and if you need to consult with us concerning the non-compete issues, please feel free to call or email. Good luck in your new venture.

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Re: Non-Compete Agreement/Discrimination

Very hard to enforce the non-compete cause, possible discrimination. Litigation will probably release you from the agreement. Call me directly at 16192223504.