Legal Question in Employment Law in California

Non-Compete Clauses

I am currently re-negociating my employment contract with my current employer. In my new contract he has a non-compete clause. The clause reads: During the term of this agreement, and twelve months thereafter, employee shall not, directly or indirectly, ingage or participate in any business that is in competition in any manner whatsoever with the business of Employer. He also has a Termination with or without cause clause. He is an ''at will employer''. This agreement is governed by the state of Illinois. I work for them in California. Do I have to sign this and if I do, what are my liabilities... What can I do????


Asked on 6/02/04, 4:55 pm

3 Answers from Attorneys

Alden Knisbacher knisbacher law offices

Re: Non-Compete Clauses

The CA Supreme Court ruled in the case of D�Sa v. Playhut, Inc. (2000), that you cannot be fired for refusing to sign a non-compete agreement (In California, unless you are a high level executive, non-competes are unenforceable.) What is interesting about your email is you say that you are "re-negotiating" your "contract." If you have a contract, you might not be terminable at-will. It really depends on the wording of the contract. Employees who are not governed by a contract are "at-will." If you are truly able to negotiate, you should request that the at-will language be removed , and you could add language that says you can only be terminated "for cause." If you are not a high-level executive, the non-compete agreement is unenforceable -- and you cannot be fired for refusing to sign it. . . Feel free to contact me if you want further info. or would like an attorney to review the contract. (I have other postings on at-will employees on this website, which you might read -- even if you are at-will, you have legal protections in CA.) Good luck.

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Answered on 6/07/04, 8:32 pm
Thomas Pavone Pavone & Cohen

Re: Non-Compete Clauses

It doesn't sound like a very good deal - at will status and a non compete. The agreement would not be enforceable in California. Some agreements based on the law of other states may be enforceable, but there is a trend to not enforce them. You should negotiate the non-compete out of the agreement. As to at will, most California employees are at will. However, if you are a valuable employee with unique skills, perhaps you can negotiate a fixed term agreement with a severance package if the employer wants to buy you out early.

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Answered on 6/07/04, 8:46 pm
Terry A. Nelson Nelson & Lawless

Re: Non-Compete Clauses

Non-compete agreements ARE enforceable in CA under some conditions, some times, they just are not favored by the courts. A contract is a contradiction to 'at will'. You need real advice and help, not generalities from the web, mine or anyone else's. Contact me if interested. This has been a speciality of mine for over 15 years.

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Answered on 6/07/04, 9:04 pm


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