
Whether you’re looking to hire a new employee, change jobs, start a business, or enter into a contract, you may run into language that restricts your ability to compete. Even though California law generally prohibits noncompete agreements, specific situations might still allow for them. A Roseville noncompete lawyer at Asbill Law Group can help you understand the details when these issues occur and what your rights and obligations may be under California law.
At Asbill Law Group, we represent businesses and employees with employment law and business litigation matters in the Sacramento Valley. We strive to offer practical advice backed by trial and appellate litigation experience. This allows us to analyze contracts, employment disputes, and business litigation under California law to provide you with options for resolving your case.
Located near Interstate 80, we serve clients throughout Roseville, Rocklin, and the rest of Placer County. We are dedicated to offering clients straightforward advice based on their specific circumstances.
Noncompete agreements are contractual provisions that prevent someone from working for a competitor or opening a competing business after their employment relationship has ended. While these types of agreements can be enforceable under the laws of some states, California law outlines unique restrictions on them. Although employers may still include language restricting an employee’s mobility, many of these provisions may not be enforceable under California law.
The sale of a business, changing employers, and hiring new employees are just a few situations where noncompete laws come into play. Business owners may wish to restrict former employees from contacting customers or opening a competitive business. Alternatively, employees might want to find out if a noncompete clause from a past employer stops them from taking a new position.
Noncompete disputes can involve multiple contract provisions and factual issues. Understanding how California law applies to your situation generally requires a review of the entire agreement and the circumstances surrounding the dispute.
About 30 million Americans, or 18% of workers, are subject to a noncompete agreement. While federal laws have made attempts to ban noncompete agreements, California has its own set of laws addressing these types of agreements.
California Business and Professions Code § 16600 prohibits contracts that restrain someone from engaging in a lawful profession, trade, or business. If a contract contains language that tries to prevent someone from working for a competitor or opening a new business, that provision is likely unenforceable.
California law does recognize a few narrow exceptions, such as when a business is sold, a partnership is dissolved, or ownership stakes are transferred. These exceptions do not apply to noncompete agreements related to the employment relationship.
California Business and Professions Code § 17200 outlines California’s Unfair Competition Law. In some cases, requiring an employee to sign a noncompete agreement or attempting to enforce an unlawful noncompete could lead to a violation of this law. This is because California makes it unlawful to engage in any unfair business practice or deception.
Many people choose to hire a noncompete lawyer prior to signing an agreement, switching jobs, buying a business, or receiving a notice of restrictive covenant violations. A Roseville noncompete attorney can examine the contract’s wording to flag potentially invalid clauses and distinguish between enforceable commitments and unlawful restraints for you.
Given the unique nature of each contract and dispute, most lawyers examine the entire document in question rather than focusing on a single provision. Your attorney can advise you how California employment laws apply to your situation.
If you do find yourself in a dispute that requires litigation, the majority of Roseville employment-related litigation is heard in Placer County Superior Court. The address for Placer County Superior Court is 10820 Justice Center Drive, Roseville, CA 95678. Please note that depending on the claims, some employment litigation may be heard in federal court or in front of an administrative agency.
The enforceability of noncompete agreements varies by state law. Many states allow employers to enforce reasonable noncompete agreements if signed under certain circumstances. Other states, like California, allow narrow exceptions in certain business transactions but generally limit enforcement of employment-related agreements. It is recommended that you hire a noncompete lawyer when documents are drafted.
Noncompete agreements that violate applicable law or exceed legal limits are not enforceable in court. For example, in California, most employment-related noncompete agreements are void by statute. Some states void agreements that are overly broad in scope or duration. Ultimately, what makes an agreement invalid boils down to its specific terms, the situation at hand, and the governing legal framework.
In certain states, a legitimate noncompete contract can restrict an individual’s ability to take on specific jobs for a set duration post-employment. California law disallows noncompete agreements related to employment. California workers are free to change employers but may still be bound by confidentiality agreements, trade secret laws, and other contractual obligations after their employment ends.
No, a noncompete agreement is not the same as a nondisclosure agreement. Noncompete agreements restrict certain employment or business activities after an employment relationship ends. Nondisclosure agreements prohibit the disclosure of confidential or proprietary information. Confidentiality agreements and trade secret laws can often still apply even if noncompete agreements are generally unlawful.
Many questions regarding noncompete agreements involve an analysis of the agreement itself and various laws that may apply to the specific facts involved. If you are reviewing an employment agreement, defending against a dispute, or looking at restrictive covenants involved with a business matter, it’s helpful to understand your rights under the law.
At Asbill Law Group, our attorneys practice employment law and business litigation in Roseville and the greater Sacramento Valley. We offer realistic advice based on your specific situation. Asbill Law Group can help you review noncompete agreements, confidentiality agreements, and other related business matters. Contact Asbill Law Group today to set up your consultation and speak with an attorney.