California Noncompete Letter to New Employees

State:
Multi-State
Control #:
US-AHI-054
Format:
Word
Instant download

Description

This AHI form is a non-compete letter to employees. The letter states that once the employee has left the company they may not reside with a competing company for a period of time. If the employee does work for a competitor the employee will have a fee to pay.

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FAQ

California State Law and Employee Non-Solicitation Agreements. California courts have already determined that non-disclosure and client/customer non-solicitation agreements are not valid or enforceable.

Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.

Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.

Yes, but you should be informed when you do. This is important because you want to make sure you alert your new employer to any issues it may face as a result of your current non-compete since those obligations follow you after you leave your current employer.

In California, agreements that prevent an employee from competing against a former employer are generally unenforceable. The California Business and Professions Code treats such noncompete agreements as against public policy and void.

In rare circumstances, an employee may be told they cannot be hired unless they sign a non-compete agreement. This is unlawful in California because they are not enforceable within the state.

Noncompete agreements are typically deemed illegal under the California Business and Professions Code unless the agreement has been made between two business owners or partners.

Generally, non-compete agreements are not enforceable in California, and if an employee refuses to sign a non-compete agreement, the employer may not terminate the employee.

Under California Business and Professions Code Section 16600, unless you were an owner of the business, any non-compete clause which forbids an employees who is fired or resigns from working for a competitor or starting a competing business is illegal and unenforceable.

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California Noncompete Letter to New Employees