Legal Question in Employment Law in California

California Non-Compete

I own a franchise of a business in California. HQ is asking me to have an employee sign a non-compete agreement. What is my liability if I ask my employee to sign this. What is my liability if I require my employee to sign this. Is there a difference? Can HQ make me, make her sign the agreement? Can HQ withhold anything from me if she does not sign the agreement?

thanks


Asked on 5/29/08, 3:43 pm

2 Answers from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: California Non-Compete

With few exceptions, non-compete agreements are not enforceable in California and you cannot fire or refuse to hire an employee who will not sign one.

Look up California Business and Professions Code, Section 16600 and send a copy of it to HQ for their education on the matter. If they harm your business or even threaten to do so, for your refusal to violate California law, you should meet with an attorney in your area to help you deal with the franchisor.

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Answered on 5/29/08, 8:20 pm
Arkady Itkin Law Office of Arkady Itkin

Re: California Non-Compete

Hey there. I "love" non-compete agreements because they are almost never valid or enforceable, with some very narrow exceptions, as these are invalid restraints on trade that are discouraged by courts and the government.

You won't be liable for anything by including the non-compete clause in your agreement, but it likely won't serve your interest in any significant manner either.

Thanks and feel free to follow up.

Arkady

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Answered on 5/30/08, 3:59 pm


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