Non-compete agreements have long been a contentious topic, particularly in states like California, where worker mobility and innovation are highly valued. Non-compete agreements can have profound effects on an employee’s career trajectory—limiting job-switching opportunities, discouraging entrepreneurial ventures, and creating a sense of professional confinement.
Staying informed and proactive about employment laws surrounding non-competes is essential for employees trying to protect their rights and career advancement opportunities. Our employment contracts attorney is committed to assisting you, providing legal advice and representation, and ensuring that your professional journey remains unhindered by restrictive non-compete clauses.
At Employee Civil Rights Group, our Orange non-compete agreement lawyer aims to provide clarity and guidance on this critical issue.
Non-compete agreements are contracts between an employer and an employee, restricting the latter from engaging in similar professions or trades in competition against the employer.
While these agreements are intended to protect business interests such as trade secrets and customer relationships, they can significantly impact an employee’s career mobility, job-switching capabilities, and entrepreneurial endeavors.
In California, non-compete agreements have always been viewed through a critical lens. The state’s public policy strongly favors open competition and employee freedom. This has led to specific laws and rulings that make most non-compete agreements unenforceable. Understanding these nuances is important for any employee forging their career path.
California took a significant step in 2023 by passing two pivotal laws: Assembly Bill 1076 (AB 1076) and Senate Bill 699 (SB 699), both reinforcing the state’s long-standing opposition to non-compete agreements.
AB 1076 codifies existing California case law, rendering non-compete agreements in the employment context unenforceable, except in cases involving the sale or dissolution of a business. This law emphasizes that the prohibition on non-competes should be interpreted broadly, following the precedent set in Edwards v. Arthur Andersen LLP.
Employers must also send written notice by February 14, 2024, to any current or former employee (employed after January 1, 2022) who signed an invalid non-compete agreement. The notice must inform the employee that the non-compete agreement (or clause) is void.
Effective January 2024, SB 699 amends the California Business & Professions Code § 16600.5. This section makes any contract with restraints on trade unenforceable, regardless of where and when the contract was signed, or whether the agreement was signed and employment was established outside California.
SB 699 also grants employees, former employees, and applicants the authority to seek damages, injunctive relief, and attorney fees when successfully challenging and invalidating restrictive covenants.
Employees should understand the key provisions and restrictions of non-compete agreements. In California:
Consulting with an Orange non-compete agreement attorney can provide clarity on how these key provisions and restrictions apply to your specific situation.
For employees, tackling issues surrounding non-compete agreements involves:
Knowing your rights under California law is the first step. Non-compete agreements are generally unenforceable in the state, except under narrowly defined circumstances.
If you’re asked to sign a non-compete agreement or believe an existing one is impacting your career, consult with an employment attorney. At Employee Civil Rights Group, we can help you understand the implications and guide you through your options.
If faced with a non-compete agreement, employees should negotiate its terms before signing. Removing or modifying restrictive clauses can prevent future complications.
Keep detailed records of any employment agreements and communications regarding non-competes. This documentation can be key if legal action becomes necessary.
If you have questions or need assistance with a non-compete agreement, don’t hesitate to reach out to a legal professional in Orange.
At Employee Civil Rights Group, we understand the nuances surrounding non-compete agreements and provide comprehensive support for our clients. Here’s how we can assist you:
For personalized assistance and advice on handling non-compete agreements, contact the attorney at our firm. Let us help you achieve and maintain career mobility and freedom. Our experienced Orange non-compete lawyer is well-versed in employment law. We understand the complications these contracts entail and are committed to helping employees protect their rights and career advancement opportunities. Whether you need help understanding a non-compete agreement you’ve signed or require assistance challenging its enforceability, we are here to support you every step of the way. Call today.
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