California - Non Compete Agreement

[kream]

What is the name of your state? California

This is crazy, but here goes.

I worked for an IT company - Company A - for 3 years.

I left to go to work for another IT company - Company B. Company B had me sign a non-compete agreement. I have been there for 7 months.

Company A and Company B both serve the same County client base.

Now, I am going to be re-hired at Company A.

The question is....should I be concerned about the non-compete that I signed with Company B?

Thank you

 

[CheeseBlotto]

Should you be concerned? Of course you should, unless you are one of those pieces of crap who don't care about living up to their word.

From a legal standpoint, the devil is in the details, you need to show the agreement to a lawyer.

 

[I AM ALWAYS LIABLE]

What is the name of your state? California

This is crazy, but here goes.

I worked for an IT company - Company A - for 3 years.

I left to go to work for another IT company - Company B. Company B had me sign a non-compete agreement. I have been there for 7 months.

Company A and Company B both serve the same County client base.

Now, I am going to be re-hired at Company A.

The question is....should I be concerned about the non-compete that I signed with Company B?

Thank you

My response:

I want to make sure you have your terms correct. Are you sure you signed a "noncompete agreement," and not a "confidentiality agreement"?

The reason why I ask this is because, in California, noncompete agreements are invalid. It makes no difference that you executed a noncompete agreement because such restrictions are generally void under Ca Bus & Prof § 16600. [Metro Traffic Control, Inc. v. Shadow Traffic Network, 22 Cal.App.4th at 860, 27 Cal.Rptr.2d at 577] A company's use of a noncompete provision that was void under Ca Bus & Prof § 16600 to prevent its former employees from obtaining other employment was held to violate Ca Bus & Prof § 17200. [Application Group, Inc. v. Hunter Group, Inc. (1998) 61 Cal.App.4th 881, 907-908, 72 Cal.Rptr.2d 73, 89]

Ca Bus & Prof § 17200 prohibits "unlawful, unfair or fraudulent business practices" in whatever context such activity might occur. This includes an attempt to enforce a covenant not to compete that is void under Ca Bus & Prof § 16600. [Application Group, Inc. v. Hunter Group, Inc. (1998) 61 Cal.App.4th 881, 906-907, 72 Cal.Rptr.2d 73, 89]

IAAL


P.S. Don't worry about SuperCheesy. He went a little "blotto".

 

[kream]

Thank you "I Am Always Liable" for your professional response. The agreement that I signed is titled "Employee Confidentiality and Non-Compete Agreement". Basically, for 5 years I cannot reveal business secrets including information about employers customers, supplies,finances, research, development, manufacturing processes, or any other technical or business information. I cannot make any unauthorized copies of business secrets or information without consent nor remove any business secrets or info from the Employer's facilities. I cannot contact any clients made at the employer's business for a period of 1 year, nor make copies of employer's business client's for use by other business.

I would not violate any of this. I am concerned that the employer is going to become angry when I leave and could make false accusations about violation of the agreement. How does an employer prove that someone has broken the agreement?

Thank you

 

[I AM ALWAYS LIABLE]

Thank you "I Am Always Liable" for your professional response. The agreement that I signed is titled "Employee Confidentiality and Non-Compete Agreement". Basically, for 5 years I cannot reveal business secrets including information about employers customers, supplies,finances, research, development, manufacturing processes, or any other technical or business information. I cannot make any unauthorized copies of business secrets or information without consent nor remove any business secrets or info from the Employer's facilities. I cannot contact any clients made at the employer's business for a period of 1 year, nor make copies of employer's business client's for use by other business.

I would not violate any of this. I am concerned that the employer is going to become angry when I leave and could make false accusations about violation of the agreement. How does an employer prove that someone has broken the agreement?

Thank you

My response:

First, the title of the employer's document is a misnomer. It's not a "Noncompete Agreement" - - despite what the title says. It's merely a "Confidentiality Agreement", plain and simple; i.e., the employer did not have you agree to stay away from any employment in the same type of work or field - - only that you cannot use customer lists, or processes or other "secrets" (and that's only if your employer was the one who invented the "secret" or "process" and that it's not something that is widely used in your line of work at other companies).

As to your last statement, that would be very difficult for your former employer to prove. I can't predict the personality of your former employer and what they may or may not do in the future regarding your agreement.

IAAL