Non-Compete and Non-Solicitation Agreements

The State of California generally frowns on these agreements. California courts have declared this a provision of public policy to ensure that citizens retain the right to obtain lawful employment and enterprise of their choice. This, however, does not mean that a non-solicitation agreement or non-compete agreement can never be used.

In certain instances, covenants not to compete can be used to protect certain employer interests such as those necessary to protect trade secrets, in specific matters involving stock options plans, and in dissolution of partnerships. There are serious penalties for employers who improperly impose these agreements, including injunctions, restitutions, and employee costs. Do not insert these types of clauses before speaking with an experienced attorney.

If you are considering putting a non-compete or non-solicitation agreement in place with an employee, shareholder, or partner, speak with one of our attorneys beforehand to make sure that you do not expose yourself to legal liability.