Covenant not to compete

[Rick Stubbs]

What is the name of your state (only U.S. law)? California
I signed a confidentiality agreement years ago and there is a clause that for 12 months after termination I can not work in the same business in all geographical areas where employer has operated. The employer has customers all over the country. Are these agreements binding?What is the name of your state (only U.S. law)?

 

[HomeGuru]

What is the name of your state (only U.S. law)? California
I signed a confidentiality agreement years ago and there is a clause that for 12 months after termination I can not work in the same business in all geographical areas where employer has operated. The employer has customers all over the country. Are these agreements binding?What is the name of your state (only U.S. law)?

**A: there are numerous cases in CA where it was determined that a non compete clause was overly broad and was unenforceable. But each case is different and an attorney would need to review your specific agreement.

 

[Zigner]

**A: there are numerous cases in CA where it was determined that a non compete clause was overly broad and was unenforceable. But each case is different and an attorney would need to review your specific agreement.

Actually, California law is clear on non-competes being void...

BUSINESS AND PROFESSIONS CODE

16600. Except as provided in this chapter, every contract by which
anyone is restrained from engaging in a lawful profession, trade, or
business of any kind is to that extent void.


ETA: Of course, there are restrictions relating to use of customer-lists from the prior company, etc.

 

[tranquility]

I agree with Zinger. In August of this year, the CA supreme court reaffirmed (Edwards v. Arthur
Andersen LLP) the general idea that covenants not to compete (Absent specific situations like the owner of a business who agrees to not compete on sale.) are void as a matter of law.

 

[Dandy Don]

You might be able to negotiate a separate agreement that revises or adjusts the terms of the non-compete to allow a specific exception for your particular situation.

 

[tranquility]

What part of VOID are you missing?

 

[Dandy Don]

What part of "except as provided for in this chapter" do YOU not understand? Just saying all agreements are automatically void is NOT correct.