Requested to Sign Non-Compete Agreement Upon Quitting

My husband's current employer is a licensed C-7 contractor. My husband recently became a licensed C-7 contractor and has given his employer 2 weeks notice that he is quiting to start his own business. His employer is demanding that he sign a non-compete agreement stating that he will not work for any of the employer's clients for a period of 12 months. My husband will not sign such an agreement. My husband may bid on future projects for some of the employer's clients. Does the employer have any legal right/basis to demand that my husband sign a non-compete agreement?

2 answers  |  asked Aug 21, 2001 1:55 PM [EST]  |  applies to California

Answers (2)

Janet M. Koehn
noncompete agreement

by and large, with limited exceptions, covenants (promises) not to compete are illegal in california. often employees are required to sign them, even though they are void as against california public policy, as a condition of being hired. there is no reason for your husband to sign what may very well be an illegal agreement on his leaving the company.
on the other hand, your husband may not use truly secret customer information that he has obtained through his present employment when he goes out to compete. if he is competing for customers whose needs and wants are right out there for anyone to find, that's perfectly proper.
your husband may need to consult with an attorney experienced in employment and competition law at some future time. you may contact me for a telephone interview.
good luck
janet m. koehn

posted by Janet M. Koehn  |  Aug 21, 2001 7:49 PM [EST]
Theresa Pfeiffer


posted by Theresa Pfeiffer  |  Aug 21, 2001 2:07 PM [EST]

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