Legal Question in Business Law in California

Such provisions are not enforceable in CALIFORNIA, as against a strong California public policy, i.e. its Constitution. If it were to be enforced in Minnesota (difficult, since you reside here) if your employment contract states Minnesota law will apply, it could be a different result. Almost all states, other than California, do not outright prohibit noncompetition provisions. In any event you cannot use confidential information gained from your prior employment in a new employment.

I agree. The non-compete clause cannot be enforced in California, except to the extent you misappropriate confidential information (which, I suppose, could happen), but the clause is likely enforceable if the employer is able to bring the suit in some other state.

Non Competition provisions are usually unenforceable in California. (However, you should check your contract in verifying which state law governs.)

Section 16600 of the California Business and Professions Code reads: �Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.�

However, Non-Compete Clauses Are Enforceable in Very Limited Cases.

One �narrow exception� to section 16600 is articulated in section 16601 which reads in certain defined circumstances, persons who sell the goodwill of a business may agree to refrain from carrying on a similar business.� (See Hill, 86 Cal. App. 4th at 901 (citing Monogram Indus., Inc. v. Sar Indus., Inc., 64 Cal App. 3d 692, 698 (1976)). The logic is that �when the goodwill of a business is sold, it would be �unfair� for the seller to engage in competition which diminishes the value of the asset he [or she] sold.�

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