Generally in California, non-compete agreements are illegal and against public policy...
1
Subject to Only a Few Exceptions, Non-Compete Agreements Are Illegal and Against Public Policy in CA
In California, non-compete agreements are illegal and against public policy (California Business and Professions Code 16600). Out of state non-compete agreements are also not enforceable in California. Court cases have held that California has a strong interest in applying its law and protecting its businesses so that they can hire the employees of their choosing. As such, when it comes to non-compete agreements, California law is thus applicable to non-California employees seeking employment in California.
2
Several Exceptions to the General Rule
There are several exceptions to this general rule. In these cases, non-compete agreements are valid:
(1) If an owner is selling the goodwill in their business. (Business & Professions Code Section 16601).
(2) When there is a dissolution or disassociation of a partnership. (Business & Professions Code Section 16602).
(3) Where there is a dissolution of a limited liability company. (Business & Professions Code Section 16602.5).
Comments - add comment