Are Non-Compete Clauses Enforceable in California? San Diego Business Attorney Explains

Non-Compete Agreements are Void in California. In most other states, “reasonable” non-compete agreements are enforceable. Practically speaking, this means that employers and employees cannot determine whether a particular non-compete agreement is enforceable without a costly legal battle. California, though, is different.

Home / San Diego Business / Are Non-Compete Clauses Enforceable in California? San Diego Business Attorney Explains. San Diego. San Diego Business | July 13, 2018. Transcript: 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 ...

In most cases, California law does not permit employers to enforce a restrictive covenant against their former employees, particularly when it takes the form of a non-compete agreement. Judges in most states view these agreements with suspicion, but California courts, following California statutory law, rarely enforce them.

Unfair Competition Law is Still Legally Enforceable While non-compete agreements are not generally legally enforceable, cases where unfair competition can be discovered are still legally enforceable. Unfair competition, per California law, is simply any business operation that is "unfair" and operates similar to a monopoly, making it difficult for other businesses to compete or even exist in the first place.

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.

Our Los Angeles employment attorneys can help defend your employee rights if your employer made you sign a non-compete agreement. Can My Employer Fire Me for Refusing to Sign a California Noncompete Agreement? It is unlawful for California employers to fire employees who refuse to sign non-compete agreements.

And courts have applied California non-compete laws to California employment without regard to all of this. In short, both the legislature and the courts are wise to creative tricks, and both have stated, in no uncertain terms, that they will not waver. California will not enforce a non-compete agreement against a former employee.

The claim that non-compete clauses chill innovation should not catch anyone by surprise. Think of Silicon Valley, the world’s technology center. California law forbids Silicon Valley firms from using non-competes, and employees are largely free to move.

While I agree that under California law, non-complete clauses are not favored, under various circumstances, reasonable and even, restrictive, non-compete clauses may, however, be enforced.

Non-compete clauses are typically unenforceable in California, however in the states where non-competes are enforceable, they also must be reasonable as to duration, geographical area, and type of employment.