Is this non-compete clause legal in a California contract?
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Is this non-compete clause legal in a California contract?
I’ve been hired to teach a weekly class
at a massive tech firm through a
contractor working for said company.
The contract I’m being asked to sign
contains the following clause
Contractor Me may not seek
independent work at the host company.
All corporate/team building workshops
or trainings sought out by the host
company or its employees, contractors,
endurance, or vendors, even when
contractor is the party requested to
lead, must be booked directly through
The Company. This policy will be
enforced up to 18 months after
contractors final assignment with The
Company. Penalty for not working
directly through The Company will be
the total earnings of the job and
removal from further assignments with
The Company.
Asked on March 12, 2017 under Employment Labor Law, California
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
In CA, non-compete agreements are illegal. However, many companies are unaware of this, especially since these agreements are legal in virtually every other other state. There are, however 2 exceptions: non-compete agreements are enforceable for (1) partnerships and (2) when someone is selling their ownership interest in a company.
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
In CA, non-compete agreements are illegal. However, many companies are unaware of this, especially since these agreements are legal in virtually every other other state. There are, however 2 exceptions: non-compete agreements are enforceable for (1) partnerships and (2) when someone is selling their ownership interest in a company.
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