Legal Question in Employment Law in California

Non-compete clause in California

I left a company one year ago. I now have accepted a position and

started at another company. The CEO of the company I left is

trying to either stop me from being employed at the new company or restricting the projects I work on if they are

competitive to similar projects in his company.

Although I don't have the paper work to disprove it, he

says I signed a 3 year non-compete. I noticed on a reply

to a non-compete question on lawguru.com that it said in California non-compete clauses are illegal except in a limited number of exceptions.

1. What are the exceptions?

2. Should I worry or is the guy blowing smoke?


Asked on 2/09/99, 7:14 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Non-compete clause in California

The principle exceptions are when someone is in an ownership position in a business and sells the business along with a promise not to compete it can be enforced. Go to http://www.leginfo.ca.gov/calaw.html and start reading at BUSINESS AND PROFESSIONS CODE SECTION 16600. You should also be aware that although the non-compete clause is illegal, you must be careful not to misappropriate any information from the other employer that could qualify as a trade secret which is protected by law with or without a contract.

Ken Koury

Kenneth P. Koury, Esq.

5807 Topanga Cyn Blvd., Suite G-201


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Answered on 2/10/99, 2:15 am


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