Fresno, CA asked in Contracts, Business Law and Employment Law for California

Q: Is the non compete in force able if they list the geographical area as all of California?

1 Lawyer Answer
Jonathan R. Roth
Jonathan R. Roth
Answered

A: The enforcement of non-competes is generally limited to a reasonable scope. Likewise, CA specifically as a matter of public policy holds that agreements in restraint of competition are to that extent void. Notwithstanding the general premise that non-competition agreements are invalid, specific Sections of the B&P Code provide certain exceptions to California's policy against enforcing non-competition covenants which apply in limited circumstances such as protection of trade secrets, confidential information and sale of a business including the sale of any good will. Likewise, if the non-compete is executed under a another legal jurisdiction, e.g. Massachusetts, the law of that state will apply as to the enforceability of the non-compete. Likewise, increasingly courts are limiting the scope of the employees that may reasonably required to sign a non-compete, such as a secretary in a sales department may be bound by confidentiality but cannot be held to a non-compete.

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