Our Los Angeles Employment Law Attorneys Discuss Non Compete Agreements in California
For the majority of situations, non compete agreements are illegal in California. The state encourages open competition and wants employees to have flexibility when leaving an employer. However, there are certain exceptions, including the sale of assets and the sale of the goodwill of a company. At Yadegar, Minoofar & Soleymani LLP, our attorneys will help you determine the validity of your non compete agreement. In the following video, our Los Angeles employment law attorney Navid Yadegar discusses the illegality of non compete agreements in California and highlights the narrow exceptions to this rule.
California has a strong public policy against non compete agreements. California wants open competition. California wants employees who are leaving a company to be able to leave and start their own company or join a competitor and continue to do business. So, with very limited exceptions, non compete agreements in California are illegal. The one exception has to do with the sale of assets and the sale of the goodwill of the company. So, as an owner of the company, you sell assets in your company. In that purchase and sale agreement, if the purchaser is also paying separately for the goodwill of the company, they can then restrict you from competing with that entity on a go forward basis provided that the restrictions are limited in time and limited in scope.