Legal Question in Employment Law in California

Sales Non-Compete

I am in a senior sales position with a firm being told to sign a non-compete document. This is a one-year old company and I brought over 95% of my current customers with me and can document that. I am told that non-compete is illegal in CA. I think that they are in the process of selling the firm and want this non-compete in place as a condition of the sale. Is this non-compete enforceable? What is my recourse?


Asked on 5/22/07, 11:37 am

4 Answers from Attorneys

Bryan Becker Stutz Artiano Shinoff & Holtz

Re: Sales Non-Compete

This is a matter being considered by the 9th circuit as I write. However, the current state of the law as stated in the recent Andersen case is that a non-competition agreement between an employee and employer, prohibiting the employee from performing services for certain former clients, is invalid under Business and Professions Code section 16600 unless it falls within the statutory or "trade secret" exceptions to the statute.

I would be willing to discuss some of the issues concerning your situation to see how I may be of assistance.

I offer prospective clients an initial consultation of 30 minutes for free.

I look forward to speaking with you.

Yours truly,

Bryan

Bryan C. Becker, Esq.

Principal

Law Office of Bryan C. Becker

The Koll Center

501 W. Broadway, Suite 800

San Diego, CA 92101

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Answered on 5/22/07, 12:08 pm
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: Sales Non-Compete

Non-compete agreements are not enforceable in California, with some exceptions, as where they are necessary to protect trade secrets. They are rarely upheld by California courts.

However, they are legal and enforceable in most other states, so the circumstances of your employment are very important. Whether to sign or not depends on many factors. You should review your situation with an experienced employment law attorney, before signing, to better understand your rights and obligations.

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Answered on 5/22/07, 12:10 pm
Alden Knisbacher knisbacher law offices

Re: Sales Non-Compete

In addition to the other posts -- you cannot be fired for refusing to sign it. You may want to consult with a lawyer about how to proceed. . .

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Answered on 5/22/07, 1:34 pm
Terry A. Nelson Nelson & Lawless

Re: Sales Non-Compete

They are not 'illegal', and can be enforceable if narrowly drafted for limited and legitimate protection of the company, and if entered into at the time of hire. Trying to force one on you now would not succeed. Feel free to contact me if you need legal help with setting the situation straight with the company, or dealing with a wrongful termination or other retaliation if you refuse to sign.

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Answered on 5/22/07, 8:29 pm


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