Legal Question in Employment Law in California
Non Compete agreement by out of state employer
I recently left a contracting company. And I continued my services with the same California based client/company through another Contracting firm that i joined. However, I signed a contract that stated I would not work for any clients of this company for a set period of time (1 year). My former employer is threatening to sue.
The questions here is : my ex-employer is based in Virginia - so how much jurisdiction or power does that non-compete document hold on me when I offer my services to the same company based in California ?
thanks you for your help.
1 Answer from Attorneys
Re: Non Compete agreement by out of state employer
Interpreting and advising clients on noncompete agreements can be tricky. As a general rule, noncompete agreements are unenforceable in California. Case law has interpreted this general rule to extend to employees who are based in California, but may work for out-of-state employers. However, there can be other issues associated with confidential information or the employer's decision to file for an injunction in their own state and then seek to have it enforced in California. Accordingly, it would be wise to discuss the situation with an employment law attorney, and have the agreement reviewed.