Legal Question in Employment Law in California

Re: Non-compete, choice of law in independent contractor agreement

You are correct, non-compete provisions are not enforceable in California except under very limited circumstances (Cal. Business & Professions Code, section 16600). California courts have determined that such provisions violate California public policy, regardless of whose state they may be legal in. No doubt they are enforceable in Texas but other state's laws that violate California public policy will not fly here.

These matters usually can be resolved between the parties involved and, if not, through their legal counsel. Rarely do they go to court because nobody ever wins these kind of cases in court.

If it looks like the employer will try to keep you from getting a job with a competitor in California, seek the help of an experienced employment law attorney.

Re: Non-compete, choice of law in independent contractor agreement

A true independent contractor relationship would be difficult to maintain if the "independent" didn't have the ability to conduct business with others. In effect you are an employee and not an independent contractor.

Therefore, you hurt yourself by working under such an fictional arrangement. You are lacking workers' comp insurance, State Disability insurance, Unemployment Insurance and you have an obligation to pay 15% self employment tax (instead of about 7% for Social Security tax). This would not be the case if you were properly classified as an employee.

As an employee the Texas non-compete would not be enforceable in California, but if the employer files first in Texas, you may be involved in an expensive legal battle that might result in damages being assesed against you.