Can I take a new job with a noncompete agreement?
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Can I take a new job with a noncompete agreement?
Background - I am a pharmaceutical sales rep and I have an employment contract with my current employer that has a noncompete clause in it. I have a new offer from a similar company that sells a different type of product and I wanted to know if my current employment contract / noncompete would allow me to take this job. Is this something you can help with? Let me know what questions you may have for me. Thank you!
Hello! Thank you so much for coming to contractscounsel.com. My name is Dolan, and I am happy to help. Generally, on California, non-compete agreements are generally unenforceable. The state's Business and Professions Code at Section 16600 declares that any contract restraining someone from engaging in a lawful profession, trade, or business is void. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=16600&lawCode=BPC What does this mean? This means that, employees, including sales reps like yourself are not restrained by a non-compete agreement clause and your employer cannot legally prevent you from accepting a position with another company, even if it operates in a similar industry. Also, Senate Bill 699 prohibits employers from entering into or attempting to enforce non-compete agreements, regardless of where the contract was signed or where the employment occurred. In other words, even if you were in some different city or county at the time you signed, or even some other state, it’s unenforceable in California. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB699. What’s nice is that this law allows employees to take legal action against employers who try to enforce such agreements, potentially recovering damages and attorney's fees. Finally, AB 1076 required employers to notify current and former employees by February 14, 2024, that any non-compete agreements they may have signed are void. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB1076. With these protections, you’re in great shape. Nevertheless, we can always review the contract terms on contractscounsel.com. You can hire me directly for this as I am an expert in employment agreements. Does that help clarify things? I want to make sure I didn’t leave anything out. Thanks so much! Dolan
Yes, I think so. In other words, I wouldn't be limited by any type of geographic scope or industry? I am asking since that's what the noncompete clause seems to mention. Why would an employer in California have added a noncompete clause if they aren't enforceable? I don't understand and it makes me nervous that it is in the contract. Is this common in California? If the new employer gives me an employment agreement that has a noncompete clause in it, should I ask them to strike it? Would that create any issues? Regarding the employment contract I have, it is 13 pages long with normal 14pt text. Do you mind letting me know how much you would charge to review it? I may consider it if the price is right.
Hello! 1. Correct. Agreements not to compete, made in CA, are void. This means even if you work for a competitor out of state, you're fine because it's not enforceable. 2. Because non-competes are completely unenforceable, there is nothing they could add. I've handled thousands of non-compete issues like this. The mistakes are common. An employer suing in court for a violation of a non-compete is not because their lawyers stop them in their tracks. The state legislature has made it clear that it's against the law to have them. 3. If the employer asks, I'd just politely suggestion, "I thought non-competes were not legal. This may be an old agreement. I'm so sorry for the confusion." This is a non-threatening, but assertive, message to your employer. If you get cold feet on it, then don't worry. It's not enforceable anyway. 4. I'd be happy to review your contract because if there is one mistake, there may be several. At just 13 pages, we can review it for $***. I want to make sure we've covered everything thoroughly. Is there anything else you'd like to discuss, or any details I can go over again for you?
This all sounds good and you answered all of my questions. Thank you again for the response. Is it possible to send a quote for the work here? If so, I will hire you to look at the rest of the employment contract to be careful.
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