Legal Question in Employment Law in California
We have an employee we just hired that has a confidentiality agreement from another company and they are saying he is subject to the confidentiality agreement. he is just working in the same industry making a living. Is he in violation of the agreement? He is not divulging anything about his previous employer. We are just in the same industry and competing against that company sometimes.
1 Answer from Attorneys
In California, every person has the right to work in their chosen profession and contracts that attempt to prevent an employee from working for a competitor are generally unenforceable as they violate Cal. Business and Professions Code, section 16600.
If this employee was a partner or sold ownership interest in his former company, the situation might be different. Of course, he cannot divulge legitimate trade secrets that belong to the employer. But as long as he does not use his ex-employer's trade secrets (which are often not really a trade secret) against them, you should be okay employing him.
I say this without having read the contract or knowing anything about the situation other than what has been posted. It usually a good idea to have your attorney review the totality of circumstances for an informed legal opinion.
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