Non-Compete Agreement
“For 8 months, my manager made me come 15 min early to work and leave 20 min late. He told me to clock in at my regular time without the extra minutes. My cousin and my friend told me to see a lawyer. I found lawyer Edgar and in very fast time there was a settlement and I got more money than i thought. He was very fast, smart, and always phoned me about my case. I recommend this lawyer for everyone.” – Allen A.
When employees leave a job, they often want to explore new opportunities, like joining a competitor or starting their own business. For example, a marketing professional might move to a rival agency, or a developer could launch a startup. Some employers try to limit these options with non-compete clauses, which restrict employees from working in the same industry or pursuing similar ventures.
In California, most non-compete agreements are unenforceable under state law, but that doesn’t always stop employers from trying. If your former employer attempts to enforce a non-compete, our experienced Glendale employment agreement lawyers can help protect your rights and career.
What Is a Non-Compete Agreement?
A non-compete agreement is an employment provision that restricts an employee’s ability to work for a competitor or start a similar business after leaving their job. These agreements are often used to protect an employer’s business interests, such as confidential information or client relationships.
Generally, employers include non-compete clauses in the employment contract you sign when starting a job. They may also place them in a severance agreement when you leave, with restrictions like the following:
| Restriction | Explanation | Examples |
|---|---|---|
|
Content |
Non-competition clauses may prohibit employees from taking similar roles or working for direct competitors in the same industry. |
Managing a competing restaurant or designing products for a rival fashion brand. |
|
Geographic Scope |
Some agreements define areas where the employee is restricted from working, such as a city, state, or broader region. |
Cannot work within a 50-mile radius of the employer’s headquarters or anywhere in the state. |
|
Duration |
Employers may impose a set timeframe for the restrictions, ranging from several months to a few years. |
One-year restriction following employment or a six-month ban on joining competitors. |
|
Confidential Interests |
Contracts may restrict the use or sharing of sensitive information, such as trade secrets, client data, or proprietary processes. |
Disclosing a company’s customer database or manufacturing methods. |
Are Non-Compete Agreements Enforceable in California?
Section 16600.5 of the Business and Professions Code invalidates most non-compete clauses in California. Employers cannot prevent employees from pursuing new opportunities, regardless of where or when they were signed (for example, an employee moved with the same company from another state to California).
California non-compete laws also mandate that adding clauses to contracts or attempting to enforce them violates the law and may result in civil penalties. These protections ensure workers have the freedom to advance their careers without restrictions.
Exceptions to the Rule
Although California generally bans non-compete agreements, they are allowed in specific situations. These exceptions protect business interests in cases involving the sale of a business or partnership:
- Sale of a business. Under Section 16601, a person selling their business can agree not to compete with the buyer, preserving the value and goodwill transferred in the sale.
- Partnership agreements. Section 16602 allows partners who leave a partnership to agree to non-compete terms within a defined area, helping protect the partnership’s operations.
- Dissolution of an LLC. Section 16602.5 permits non-compete restrictions for members of a dissolved limited liability company, ensuring the remaining business is not undermined.
What Are Your Rights if an Employer Tries To Enforce a Non-Compete Clause?
When employers try to enforce a non-compete clause, it can have severe consequences for workers. If an employer tries to impose one, it could lead to uncertainty about your career, missed opportunities, or hesitation to accept new roles. You might feel pressured to comply, fearing legal threats or financial consequences. This can disrupt your ability to earn a living or pursue professional goals.
If a former employer tries to uphold a non-compete agreement, you have the right to take legal action. A skilled employment lawyer for non-compete clauses at Manukyan Law Firm can evaluate your case and guide you through the process. Our team can file a lawsuit to stop the enforcement and seek compensation for any financial harm you’ve experienced.
Steps To Take if You Face a Non-Compete Dispute
Encountering a non-compete clause in your employment agreement or dealing with an employer attempting to enforce one can be intimidating. However, understanding your rights and taking proactive steps can protect your career and future opportunities. Here’s how to handle a non-compete dispute:
1. Review Your Agreement
Review your employment contract or severance package to see if it includes a non-compete clause. Look for the following sections or language that could indicate your employer is trying to restrict your future opportunities:
- Restrictive covenants. These sections may include phrases like “non-competition,” “post-employment obligations,” or “restrictive agreements,” signaling an attempt to limit your activities after leaving.
- Prohibited activities. Language such as “you agree not to work for competitors” or “you may not engage in similar business activities” suggests an unenforceable non-compete.
- Geographic or time limits. Clauses that reference working “within a certain area” or “for a specific period” after employment often fall under non-compete terms.
- Confidentiality or trade secrets overlap. Some employers disguise non-compete restrictions within sections on protecting confidential information or trade secrets.
2. Consult an Employment Lawyer
Consult an employment lawyer for non-compete agreements to understand your rights. A qualified attorney can review the agreement and identify whether it violates California’s laws and help you take action to protect your future. At Manukyan Law Firm, we can:
- Assess the clause. Your attorney will determine if the language in your agreement is enforceable or falls under specific exceptions, such as the sale of a business or dissolution of a partnership.
- Explain your options. Our team will explain your rights and legal options for your specific situation. This can include filing a civil claim against your employer to stop enforcement of the agreement and recover any losses caused.
- Legal representation. A non-compete lawyer can help you recover damages such as lost wages, financial losses, and emotional distress caused by the invalid agreement. Per Statute 16600.5, we can also seek compensation for attorney and court fees to hold your employer accountable.
3. Gather Evidence
Build a strong foundation for your case by collecting all relevant documentation. Your attorney can help you gather evidence showing how the agreement affected you and identify any additional workplace violations:
- Employment contract or severance agreement. Include the document with the non-compete clause and any related terms.
- Emails or written communications. Save messages from your employer about the non-compete or attempts to enforce it.
- Job offers or applications. Provide records of missed opportunities due to the non-compete.
- Wage and benefits records. Gather pay stubs or documents showing unpaid wages, withheld benefits, or other salary issues.
- Leave or workplace policy violations. Include evidence of other rights violations, such as denied leave or improper deductions.
4. Take Legal Action, If Necessary
If your employer continues to enforce an invalid non-compete agreement or other workplace violations, you may need to take formal action to protect your rights. Your options may include:
- Negotiate with your employer. Work with your attorney to negotiate or mediate with your employer directly. You may be able to come to an agreement and resolve the issue without further action.
- File a complaint. Submit an official complaint to the California Department of Industrial Relations or California Attorney General to investigate and enforce your rights.
- Pursue a lawsuit. If your employer or former employer refuses to negotiate or agree to fair terms, you may file a civil lawsuit to recover damages, stop enforcement, or address related violations.
Why Manukyan Law Firm?
At Manukyan Law Firm, we help employees protect their rights and push back against unfair treatment in the workplace. From non-compete disputes to wage violations, we understand the stress these situations cause and provide qualified legal guidance through every step of your claim.
With years of experience in California employment law, we can help you hold a current or former employer accountable for violating your rights. We have a track record of winning favorable settlements for clients, including $750,000 for whistleblower retaliation, $498,500 for disability discrimination, and $400,000 in a wage and hour case.
We are committed to protecting your rights and helping you move forward.
Protect Your Rights With a Glendale Non-Compete Lawyer
California’s non-compete laws are designed to protect employees, but disputes can still arise. Whether you’re navigating an employment contract or challenging an invalid clause, the Glendale non-compete agreement lawyer at Manukyan Law Firm can help. Contact us today to schedule a free consultation.
FAQs
Does California allow non-compete agreements?
No, California generally prohibits non-compete agreements under Business and Professions Code Section 16600, with limited exceptions such as the sale of a business or dissolution of a partnership.
Can my employer enforce a non-compete clause in California?
In most cases, non-compete clauses are unenforceable in California. However, consult a non-compete lawyer to confirm the specific circumstances of your case.
What should I do if my employer is trying to enforce a non-compete clause?
Consult an experienced employment lawyer for non-compete clauses to evaluate your rights and take appropriate action.
Can I sue my employer for including an invalid non-compete clause in my contract?
You may have grounds to sue if an employer unlawfully enforces or threatens to enforce a non-compete clause. Consult a Glendale non-compete agreement lawyer for guidance.
WHY MANUKYAN LAW FIRM?
- Passionate Representation
- Trustworthy Counsel
- Consistent Results
- Glowing Peer Reviews
