Monthly Archives: June 2014

Non-compete (noncompete) clauses are becoming more and more commonplace in all sorts of jobs today. Traditionally, noncompete clauses were expected in high technology jobs, sales positions, and corporations with valuable secrets; however, in recent years, noncompete clauses have began popping up in other types of jobs, including: event planners, chefs, investment managers, and even yoga instructors. With the proliferation of noncompete clauses, often a non-negotiable condition of employment, the New York Times even ran an article recently that highlights some of the unexpected jobs where noncompete clauses are popping up. From the employers perspective, these restrictive covenants are seen as essential to protect their business secrets and make sure their high ranking employees from leaving to become competitors. Unfortunately, many employees often don't think twice about agreeing to a noncompete clause because they either haven't had any experience with them before, or don't imagine a situation where it would be a concern. Also, in today's job environment, many employees are simply happy to get a job and don't want to rock the boat before the offer is finalized. Whether a noncompete clause is enforceable is a matter of state law. Just because there is a noncompete clause in your employment contract doesn't mean that you can sue or be sued for breach. While every state is different, California law strongly disfavors noncompete clauses. Courts disfavor these restrictive covenants and see them as an unfair restraint on competition. While the blanket rule in California is that a noncompete clause is not enforceable, there are a few expectations where courts have held that a noncompete clause will be enforceable. This is often true even [...]