Non-Competition Agreements at Work
California is different than most states in that non-competition agreements are difficult to enforce, and they do not apply in most cases. Most commonly, they are used between businesses at time of sale. In these instances, the previous owner agrees to not interfere with the new ownership of the company. In order for a non-competition agreement to be enforceable, the content of the document as well as the context surrounding the signing must meet standards. First, the agreement must have been signed willingly; forcing an individual to sign a non-competition agreement is grounds for the agreement to be voided and the terms in it suspended. Second, the contents must be lawful – asking an individual to go beyond what is reasonable and legal in order for the contract to be binding is also terms for suspension of the terms.
There are a couple of circumstances where breaking a non-competition agreement is possible. Such circumstances typically involve the legality of the document and whether it is enforceable; in the state of California, it is likely that a non-competition agreement has grounds to be dismissed. Additionally, if the contract provider has done something illegal while conducting business, an individual may have grounds to break an otherwise reasonable contract. The legality of the agreement comes down to the interpretation of the judge working the claim, and it is important to have a proficient team defending you in court.