Legal Question in Employment Law in California

You are correct, in California non-compete clauses are generally not enforceable, with some exceptions (such as with someone who is selling their business to another). Look up California Business and Professions Code, section 16600, if you wish to cite the law upon which this is based. There are cases that have held that employers who fire an employee who refuses to sign a non-compete, can be sued for wrongful termination, as the practice is in violation of the public policy of the state of California.

However, they are legal in many other states and that is where the situation gets a little tricky, like when you work in national sales for an out-of-state corporation. I cannot go into a whole course on this subject, as it can get confusing. But if you believe your rights are being violated by a company trying to keep you from working for a competitor, you should take the time to run the whole scenario by an attorney knowledgeable in this area.

Hello, that's correct. The non-competes are generally unenforceable. However, most claims arise out of unfair competition and use of confidential information. Confidentiality agreements are legal and enforceable. Most problems occur when the employee who leaves uses customer lists or other proprietary information of the employer to promote to sustain his/her own new business. This might be illegal if the employer shows that this information is indeed confidential (there are several elements to determining whether the information is "confidential')

Thanks,

Arkady Itkin

San Francisco & Sacramento Employment Lawyer

http://www.arkadylaw.com