Non Compete Agreement

Many employees that sign an employment contract will find a non compete agreement within it. This non compete agreement commonly says that the employee may not work in an industry or for an employer after leaving the current position that competes with the employer. A non compete agreement can vary in duration, but commonly prevents competition for a year or two.

In California, it is often found that a Non compete agreement is invalid. California Business and Professions Code Section 16600 provides that any contract that restrains someone from engaging in a lawful profession is void as a matter of public policy. This agreement is generally called a non compete agreement. Moreover, non-solicitation clauses may also be void as contractual restraints on competition.

In Dowell v. Biosense Webster Inc. (2009), 179 Cal. App.4th 564, an employer’s threatened enforcement of a non-solicitation provision clause violated California’s unfair competition law. Similarly, D’ Sa v. Playhut Inc. (2000), 85 Cal. App.4th 927 held that an employee may state a wrongful termination claim if he or she is fired for refusal to sign a non-compete clause.

Call the attorneys at Freiman Law now for a free consultation and case evaluation regarding a non compete agreement at  (310) 917-1024 or fill out the form to the right.

By Lawrence Freiman