Legal Question in Business Law in California

California has a law (Business and Professions Code section 16600) that severely limits the ability of an employer to restrict the mobility of employees. In general, an employee can always leave to start a competing business. This does not mean, however, that you can take trade secrets like customer lists and prospect information. B&P 16600 reads:

"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."

The exceptions later in the chapter have to do with sales of businesses including purchase of the goodwill, breakup of partnerships and other matters not involved here.

I cannot predict that the company won't sue you for breach of contract, but I'd be of the opinion that you have an excellent defense under B&P 16600. Just be careful not to snitch the boss's Rolodex on your last day of work -- its contents would be trade secrets.

The attorney above is directly on point.