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Non-Competes are Unenforceable in California

Most non-competition agreements are unenforceable in California. The California Court of Appeals ruled agreements that restrict an employee's ability to pursue similar employment after leaving a job are prohibited, even if they are narrowly written and leave a substantial portion of the available employment market open to the employee.

However, a non-competition agreement is enforceable if it clearly falls under one of the following exceptions:

  • Trade secrets protections, which can legally restrict an employee's ability to use confidential information or company-defined trade secrets.
  • Sale of a business, which can legally restrict a seller's ability to compete with the buyer in the geographic location where the seller had carried on his business.
  • Dissolution of a partnership, which can legally define a geographic area within which one of the partners cannot conduct a similar business.

Need more information on how this impacts your business? Call HR NETwork, Inc. today!

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