Non-Competes

Non-compete agreements can significantly impact your career and future employment opportunities. Understanding the implications of these agreements and your rights under California law is essential, whether you’re a C-suite executive or an entry-level employee. If you are facing issues related to a non-compete clause, we recommend reaching out to Kesluk, Silverstein, Jacob, & Morrison to seek legal guidance and protect your professional and financial interests.

In California, non-compete agreements are generally unenforceable. The state has a strong public policy favoring employee mobility and competition, which is codified in Section 16600 of the California Business and Professions Code. This law states that, except in certain limited situations, any contract that restrains someone from engaging in a lawful profession, trade, or business is void. If you feel as though your employer is wrongly attempting to enforce a non-compete clause, reach out to our firm today.

Exceptions to the Rule

While non-compete agreements are broadly unenforceable in California, there are specific exceptions, including:

  • Sale of Business: Non-compete agreements may be enforceable when they are part of the sale of a business, including the sale of goodwill or shares of stock in a corporation.
  • Partnership Dissolution: Non-compete clauses may be enforceable in the context of dissolving a partnership or a limited liability company.

Even within these exceptions, the non-compete agreements must be reasonable in scope and duration to be enforceable.

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Common Non-Compete Issues Faced by Executives

As an executive employee, you may encounter various issues related to non-compete clauses. If when this happens to you, we recommend reaching out to one of the experienced attorneys at KSJM to help you navigate your claim.

  • Overly Broad Restrictions: Agreements that are excessively restrictive in terms of geography, duration, or scope of prohibited activities.
  • Employer Enforcement: Employers attempting to enforce non-compete agreements despite their general unenforceability under California law.
  • Employer Based Out of State: Challenges arising when a California executive works for a company based in another state where non-compete agreements may be enforceable.
  • Conflict with Trade Secrets: Balancing non-compete clauses with the protection of trade secrets and proprietary information.
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How Am I Legally Protected?

California law provides robust protections for employees, including executives, to ensure they can pursue their careers without undue restrictions. If you are facing a dispute over a non-compete agreement, it is important to understand your rights and the legal standards that apply.

If you encounter issues with a non-compete agreement, consulting with an experienced employment attorney is essential. A knowledgeable Los Angeles non-compete issues attorney at Kesluk, Silverstein, Jacob, & Morrison can help you understand your rights and the best course of action to resolve any disputes.

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Contact Us for a Free Consultation

If you are an executive facing issues with a non-compete agreement, contact a Los Angeles non-compete issues attorney at Kesluk, Silverstein, Jacob, & Morrison today. We offer free initial consultations to help you understand your rights and determine the best course of action. Our goal is to provide you with the resources and support needed to resolve your dispute and secure your professional future.

Reach out and schedule your initial consultation today. We are committed to protecting your rights and ensuring fair treatment in the workplace. Let us help you navigate the complexities of non-compete disputes and achieve the resolution you deserve.

Non-Solicits: Protecting Your Relationships Without Handcuffing Your Future

Unlike a straight non-compete, a non-solicitation clause tries to prevent you from contacting the very lifeblood of your success—customers, vendors, or even former teammates—after you move on.

Employers often bundle these provisions into employment or equity agreements to keep their “book of business” locked down.

California specifies:

  • Broad customer or employee non-solicits are usually void under the same Business & Professions Code § 16600 that kills most non-competes.
  • Carve-outs mirror the non-compete exceptions. They may survive only when tied to the sale of a business or a bona fide partnership/LLC breakup and must be narrowly drawn in time, geography, and scope.
  • Companies can still shield genuine, proprietary trade secrets (e.g., confidential pricing algorithms or unpublished product roadmaps). What they can’t do is slap a “trade secret” label on a generic client list and bar you from fair competition.
Scenario Why It’s a Problem How KSJM Counters
“No-Poach” employee restrictions that forbid hiring ex-colleagues Violates CA public policy and stifles talent mobility Attack unenforceability, spotlight Edwards v. Arthur Andersen precedent, pressure employer to withdraw threats
Customer non-solicits with nationwide reach Grossly overbroad and chills lawful competition Push to void or narrow; leverage § 16600 and recent state enforcement actions against such clauses
Out-of-state choice-of-law + forum clauses Employer hopes another state’s tougher rules will stick Use CA Labor Code § 925 to keep the dispute—and CA law—in California
“Money-for-silence” repayment penalties Liquidated-damage schemes that intimidate executives from competing Challenge as unlawful restraint and oppressive penalty; demand declaratory relief

When a former employer threatens suit or fires off a cease-and-desist, KSJM turns the tables. We quickly dissect the clause, spotlight illegality, and, if needed, seek an injunction or declaratory judgment to clear your path.

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