Home  |  About Us  |  Contact Us  |  Client Access  
Call us at 714-799-1115

HR RESOURCES

» FAQ's
» Hot Spot Webinars
» Previous Audio Files
» HR Links
» Flare Ups
» Press Room
» E-Tips
» Compliance Audit

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!

HR NETwork's eTip is published solely for the interest of friends and contacts of HR NETwork and should no way be relied upon or construed as legal advice. If you are receiving our weekly eTip, you or a colleague (on your behalf) asked to be included. We will not give away or sell our distribution list. If you wish to be removed, please reply with "remove" in the subject line.


HR NETwork Privacy Statement