Legal Question in Employment Law in California

In 2006, I signed a non-compete agreement with company "X," a Calif based company, which sells my services to company "Y." I would like to quit company "X," form my own company and directly sell my services to company "Y." Is the non-compete agreement legal in the state of California and could company "X" sue me for violating their agreement?


Asked on 7/27/10, 5:31 pm

5 Answers from Attorneys

Generally, "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." California Business and Professional Code � 16600.

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Answered on 8/02/10, 8:29 am

My previous answer only addresses the non-compete agreement. Company X may, however, have alternative causes of action due to certain relationships or your knowledge of its operations (i.e. misappropriation of trade secrets, unfair competition, etc.).

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Answered on 8/02/10, 8:47 am

Mr. Kane should practice in his own state. Although the B&P Code does include the provision he quotes, there is a large amount of case law that interprets that section as not prohibiting all limitations on employment, only a complete prohibition on taking employment in a particular trade or profession. He is right, however, that considering you connected with company Y through company X they have a lot of different causes of action they could sue you for if you went through with your plan, even if the non-compete agreement was overturned, which in this case it probably would not be.

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Answered on 8/04/10, 1:18 am

Like Mr. McCormick, Mr. Kane is practicing law in his own state of California.

Robert Douglas Kane Jr - #242955

Current Status: Active

This member is active and may practice law in California.

Perhaps Mr. McCormick should conduct a shred of research before inferring that an individual is involved in the unauthorized practice of law.

Thank you for validating my answers Mr. McCormick.

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Answered on 8/04/10, 8:00 am

In addition, based on the facts presented I would not as easily concede that the non-compete is enforceable as Mr. McCormick seems to be willing to do in your defense.

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Answered on 8/04/10, 8:19 am


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