Once again, non-compete clauses in employment contracts are considered to be illegal in California, with a few minor exceptions. In 1872, CA decided it would favor open competition, rather than allowing non-compete clauses in employment contracts and another CA Supreme Court case has upheld this notion. In a recent case against accounting firm Arthur Anderson LLP, the Court stated that California employers cannot by contract prevent former employees from engaging in their profession, trade or business, unless the contract falls within one of the specific statutory or judicially created exceptions.

The exceptions to when the law does allow non-compete clauses are:

• When a business owner sells his business in goodwill
• When an owner is disposing of all shares in a corporation
• When the owner of a business is selling all or substantially all of the operating

assets and goodwill of a business

• When a partner is dissolving or withdrawing from a partnership
• When a former employee uses a former employer’s trade secrets or confidential

proprietary information to solicit the business of the former employer’s customers

• When a former employee engages in other types of unfair competition

If you have signed a non-compete clause with your employer that does not fall within one of the protected categories, you need the experience of a knowledgeable legal team to help you defend your rights as a California employee. If you live in CA, the employment attorneys at Law Offices of David H. Greenberg are here to help you. Don’t waste time, call us now at the Law Offices of Law Offices of David H. Greenberg at 1-888-204-1014 for a free consultation regarding your legal rights and to hear how one of our experienced employment lawyers may be able to assist you.