Legal Question in Employment Law in California
I am being asked to sign "Proprietary Information Agreement" for a company I just started with 3 weeks ago. In it they have a clause stating: "I acknowledge that I am and will be in possession of Propietary Information and that my services are of unique and great value to Columbia. Accordingly, during my employment with Columbia and for 3 year period I will not directly or indirectly own, manage, control, participate in, consult with, render services for, or in any manner engage in, any business that competes or conflicts with the current or planned business of Columbia anywhere in the world, other than in connection with Columbia.
Being in California, I know in general Non-Competes are not able to be enforced. My question is, if I sign: 1) is the entire agreement void? 2) am I in any jeopardy of this being enforced in court.
I would prefer to sign the document and not make waves, as finding this job in this economy was difficult enough, and I prefer not to seem like a trouble maker. Do I put myself in jeopardy anyway, by signing the document?
Thanks for your help
Jeff
1 Answer from Attorneys
As you appear to know, non-compete agreements are in violation of California Business and Professions Code section 16600, and are generally not enforceable in California. Case law has decided it is unlawful for an employer to fire an employee who refuses to sign these types of agreements as they are contrary to public policy.
However, it may be more prudent to follow the approach you suggest, and sign the agreement, in order to avoid a current legal conflict. If you leave this job and get offered a job with a competitor, a strongly worded letter from a lawyer often will convince the employer it would be foolish to try to enforce a contract that violates California public policy.
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