How can I make sure that a non-compete clause is invalid in our state?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How can I make sure that a non-compete clause is invalid in our state?
My wife signed a non-compete clause with her employer, an after school kids’ program.
She is leaving the company and we are starting a summer camp. I believe that the non-compete clause and any arbitration clause that comes with it are void in our state. Is that true?
Asked on December 12, 2016 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Your wife and you are in luck: California courts consider that it is a fundamental policy of the state that agreements in restraint of competition are void (since the courts will not enforce contracts which violate clear public policy), and have held so in a number of cases, including (one of the more-often cited ones), Edwards v. Arthur Anderson (44 Cal.4th 937). There are a few limited exceptions to this bar on non-competion agreements, but they involve business owners and partners, not rank-and-file employees, like a teacher in a school (unless she's one of the school's owners).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.