Foreign Independent Contractor Agreement With Non Compete Clause In San Bernardino
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Code §§ 16600, 16601, and 16602.5). The only exceptions are non-compete or restrictive covenants that fall within one of the narrow exemptions authorized by statute, all of which relate to the sale of the goodwill of a business, or of a substantial ownership stake in the business.
Yes, if you have signed one with your employer. However, non-compete clauses are operable only for a reasonable period of time only even if the clause mentions otherwise.
As with many things, however, California is different. California law explicitly voids all non-compete agreements for employees and independent contractors. These agreements are simply not enforceable, no matter how reasonable they may seem.
The only exceptions are non-compete or restrictive covenants that fall within one of the narrow exemptions authorized by statute, all of which relate to the sale of the goodwill of a business, or of a substantial ownership stake in the business.
Outside of those industries, the major exceptions include (1) existing agreements for “senior executives” (defined below), (2) non-competes entered into in connection with the bona fide sale of a business, and (3) non-competes enforced where the cause of action accrued prior to the rule's effective date.
Seek Legal Counsel An attorney specializing in employment law can provide personalized advice and help you understand your rights and options. Legal counsel can assist in negotiating with your former employer, challenging the enforceability of the non-compete agreement, or pursuing legal action if necessary.
California Business and Professions Code § 16600.5 states that a void non-compete under California law is “unenforceable regardless of where and when the contract was signed.” It also prohibits employers from enforcing a void provision “regardless of whether the contract was signed and the employment was maintained ...
The ban covers all non-competes for U.S. workers (including employees and independent contractors) with limited carve-outs, and is subject to certain exceptions based on the FTC's statutory authority.
Even workers labeled as “independent contractors”—who should have the freedom to work for multiple clients—are often required to sign non-competes that limit where they can work. Employers often present non-competes as a “take it or leave it” contract, forcing workers either to sign or forego employment.
As with many things, however, California is different. California law explicitly voids all non-compete agreements for employees and independent contractors. These agreements are simply not enforceable, no matter how reasonable they may seem.