When employees are hired, they are often required to sign agreements, which often include non-compete clauses. These clauses often prohibit an employee from competing with the employer after their employment ends. These sometimes specify an employee cannot work for specific other companies, or specific types of businesses, or in a specific geographic area. These clauses also prohibit the former employee from using or disclosing confidential information and trade secrets. They also contain non-solicitation clauses, related to clients and other employees.

In some states, these are legal and in some they are not. As such, some employers outside of California will insert a clause that says the law of another state will apply to the contract and non-compete clause. This is not controlling. Moreover, in California, non-compete clauses are presumptively invalid and unenforceable. There are a few exceptions to this rule, but employers often abuse it and hope the employee does not know better. This is why it is crucial to talk to a lawyer about these clauses before you sign them, or after your employment ends. We can also help with these clauses when negotiating severance agreements.

If you have a non-compete clause and you are leaving your employment you should contact the Wagner Legal Group, P.C. for a free consultation to help analyze the issue or call (310) 857-5293.