If I signed a non-compete clause in employment contract, does that mean I cannot operate a business in the same field?

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If I signed a non-compete clause in employment contract, does that mean I cannot operate a business in the same field?

I work for a tax preparation company. They required me to sign an employment contract that has a clause “no solicitation covenant” where 2 years following me quitting or being fired I cannot use “confidential business information that directly or indirectly solicit, divert, or take away companys clients or otherwise interfere with companys contin relationship with its clients. Does this mean that I cannot go out on my own and put an ad in the paper for tax services and complete any tax returns done by them for 2 years?

Asked on April 23, 2012 under Employment Labor Law, California

Answers:

Hong Shen / Roberts Law Group

Answered 9 years ago | Contributor

Typically for a non-compete clause to be valid it must be reasonable. If the clause says you cannot operate in the same line of business for 2 years then you cannot. 2 years is not per se invalid and unreasonable.


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