As a resident of California, it`s important to understand the state`s policy on non-compete agreements. California is known for being an innovator and creator of new businesses, which is why the state`s laws are designed to encourage competition and entrepreneurship. In fact, California is one of the few states that prohibit non-compete agreements, which are contractual agreements between an employer and employee that typically restrict the employee`s ability to work for competitors or start a competing business.
California`s ban on non-compete agreements is found in Section 16600 of the California Business and Professions Code. This provision states that “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” This means that any agreement that restricts an individual`s ability to work in their chosen field or industry is unenforceable in California.
There are some limited exceptions to this rule. For example, non-competition agreements may be enforced in the context of the sale of a business, where the buyer of the business may require the seller to agree not to compete with them for a certain period of time. Additionally, non-solicitation agreements – which prohibit an employee from soliciting their former employer`s customers or employees – are generally enforceable in California, as long as they are narrowly tailored to protect the employer`s legitimate business interests.
It`s important to note that even though non-compete agreements are not enforceable in California, employers are still able to protect their trade secrets and intellectual property through confidentiality and non-disclosure agreements. These types of agreements are designed to protect the employer`s proprietary information and can be enforced by California courts.
In summary, if you are considering taking a new job in California, you can rest assured that you won`t be restricted from working in your chosen field by a non-compete agreement. However, it`s important to carefully review any agreements you sign with your employer to ensure that you are not inadvertently agreeing to any overly restrictive terms. If you have any questions or concerns about your employment agreement, it`s always a good idea to consult with an experienced employment lawyer.
