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?
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.
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.).
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.
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.
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.