Non-compete covenants, as a general rule are not enforceable in California. For example, if you have an employee working for you and that employee decides to, decides that they want to leave, even if they have signed a document which purports to limit their ability to leave and move on, that would be per se, per se not enforceable. However, there are two situations where covenants not to compete are enforceable. One of them of course, applies if you purchase a business and as part of the underlying documentation, the seller of the business is limited by time, say five years, three years and also by territory, within a specific region, from competing with you in that business, that will be enforceable. The other situation or the other circumstance when a covenant not to compete is enforceable is if one partner buys out another partner, or one shareholder in a corporation buys out the other shareholder. In that context, a covenant not to compete will also, definitely be enforceable, but again from the standpoint of restrictive covenants of that nature, it’s very important that they be drafted carefully to ensure enforceability even in those two circumstances. Feel free to call us for purposes of scheduling a confidential consultation, the telephone number here is (858) 564-0136 or you can visit us at our website PurdyBailey.com.
More info on Are Non-Compete Clauses Enforceable in California? San Diego Business Attorney Explains
Ask Hackaday: How Should Hackers Handle IP Agreements?
One was a broad and vaguely worded non-compete agreement which essentially ... have the effect of dampening after-hours creativity. From the lawyer’s point of view, it’s the perfect endpoint ...
California Labor Code Section 925 and How Employers Can Avoid It
California Labor Code Section 925 prohibits employers from requiring employees who reside and work primarily in California, as a condition of employment, to agree to any provision that would ...
A Puzzling Thing about American Culture and Racial Identity
As I continue to work on my forthcoming book on racial classification law in modern America, I often notice tangential but fascinating issues. Here's one. Consider an American who grows up with ...
Mediation in Today's News
Litigation and arbitration can be lengthy and costly, which explains in part why mediation ... many of which began in Silicon Valley — the clauses can seem to conflict with professed goals of upending ...
Preparing For Mediation: How In-House And Outside Counsel Can Collaborate To Maximize Results
Under these circumstances, pre-filing mediation could enhance the possibility of a settlement or a negotiated restructuring of the parties’ business relationship ... will undoubtedly question the ...