Q: Would the non-compete still apply to a wrongfully dismissed employee?

A: In California, non-compete agreements are generally unenforceable, whether an employee is dismissed wrongfully or not. State law prioritizes an individual's right to work and earn a living, which means such agreements typically hold no legal weight.

If you've been wrongfully dismissed, you have additional grounds to contest any non-compete clauses. California courts are highly protective of employees' rights, and wrongful termination could further invalidate any attempt to restrict your employment opportunities.

It's important to review your specific situation with a legal expert to understand all your options. This will ensure you are fully aware of your rights and can make informed decisions about your next steps.

A: Traditional “non competes” are agreements that purport to restrain an employee from working for a competitor, from soliciting customers, from soliciting former co-workers for employment, or from engaging in otherwise lawful conduct that a business may consider competitive and therefore harmful to its business interests. However, such agreements are generally unenforceable in California.

California has a very strong public policy of encouraging robust business competition, employee self-betterment, and employee mobility. Those policies are effectuated in Business & Professions Code section 16600, which renders void and unenforceable any agreement that, by its terms or operation, restrains an individual from engaging in a lawful profession, trade, or business of any kind. The only exceptions to this strict general prohibition against non-competes are the specific statutory exceptions that exist in the Business & Professions Code itself. Those exceptions arise when an individual sells their interest in a business’s goodwill as part of the sale of the individual’s equity interest in a partnership, corporation, or limited liability company.

That an employee was discharged for good cause does not in itself strip them from the benefits and protections of Business & Professions Code section 16600.

I note in passing that the term “non-compete” is sometimes used generically to refer to any agreement that may possibly limit a current or former employee’s ability to engage in work for another employer, particularly one in the same industry or niche space as the individual’s former employer. For example, non-attorneys sometimes refer to a trade secret protection agreement as a “non compete,” because it may impact the individual’s employment opportunities.

Trade secret protection agreements prohibit the unauthorized use or disclosure of a company’s trade secret information, which is information to which the employer has a protectable legal right to prohibit others, including current or former employees, from using.

An enforceable trade secret protection agreement, and the underlying federal and state statutes used to enforce and protect trade secret rights, are unaffected by whether an employee quits, was fired for cause, or was fired without cause. The employer retains all of its trade secrets rights under each scenario.

Please note that the above is a general discussion of the law and should not be interpreted as advice regarding any specific situation, which may include many facts not included in the question posed. No attorney-client relationship is formed by reading this response.