Is the no-compete clause valid in California?

There is no-compete clause in my severance package by my employer, and it states that I would have to abide by laws of other state, even though I work in California.

4 answers  |  asked Jun 13, 2010 11:18 PM [EST]  |  applies to California

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Answers (4)

George Allen
All of the preceding answers are valid. An additional consideration is that these issues are sometimes resolved by a "race to the courthouse." If your former employer files a lawsuit in another state, and that court upholds the clause based on the other state's law, a California judge may be reluctant to overturn another state court's decision. All depends on the particulars.

posted by George Allen  |  Jun 14, 2010 09:38 AM [EST]
Janet M. Koehn
there is still an open question whether noncompete agreements are enforceable, where the agreement is in exchange for compensation in the form of severance pay. you need to have your agreement reviewed by an attorney skilled in employment law. this site is not intended to substitute for individualized legal advice. pay an attorney a proper fee for personal advice after (s)he has reviewed the severance agreement and your individual circumstances. you can find an attorney, including the two who have previously answered, experienced in employment law at the california employment lawyers association's website, www.celaweb.org.

posted by Janet M. Koehn  |  Jun 14, 2010 08:53 AM [EST]
Elisa Ungerman
He is correct. I have nothing to add.

posted by Elisa Ungerman  |  Jun 14, 2010 07:00 AM [EST]
Arkady Itkin
Hello.

Generally, non-compete agreements prohibiting a former employee from engaging in a business similar to that of his employer are non-enforceable in California.
However, confidentiality agreements and non-solicitation agreements which are often parts of the non-compete agreement are enforceable in many cases.

Thanks,

Arkady Itkin

posted by Arkady Itkin  |  Jun 13, 2010 11:38 PM [EST]

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