California Noncompete Agreement: What's Included and Enforceability
Quick Facts — Noncompete Agreement Lawyers (California)
- Avg cost to draft a Non-Compete Agreement: $420.00
- Avg cost to review a Non-Compete Agreement: $440.00
- Lawyers available: 54 California employment lawyers
- Clients helped: 32 recent noncompete agreement projects in California
- Avg lawyer rating: 5.0 (8 reviews)
Is a Non-Compete Agreement Enforceable in California?
No. California is one of the three states in the United States that prohibits the enforcement of non-compete agreements. California statutes explicitly state that any contract that restrains a anyone from engaging in a lawful profession, trade, or business is void.
The purpose of a non-compete agreement is to prevent a worker from engaging in a similar business after leaving a company. Non-compete agreements are meant to protect an employer’s business interest, but these restrictive contracts can often place an unfair burden on employees who are looking for work. For this reason, many states place restrictions on these contracts, or like California, ban them all together.
Can My Employer Stop Me from Going to Work for a Competitor in California
No. An employer cannot stop an employee for going to work for a competitor in California. California statutes protect employees by prohibiting any kind of contract that would restrict an employee from working in their chosen industry.
It should be noted however, that even though California prohibits non-compete agreements, confidentiality agreements are enforceable. This means that if an employee signs an enforceable confidentiality agreement, then leaves the company to work for a competitor, they will still be bound by the confidentiality agreement.
Confidentiality agreements often protect a company’s trade secrets, customer lists, documents, and proprietary information. The employee will be prohibited from sharing any of this information at their new job.
Can a Non-Compete Agreement be Used for the Sale of a Business in California?
There are only two circumstances in which a non-compete agreement may be used in the state of California:
- Selling a business. When a business owner sells the goodwill of a business, a non-compete agreement can be used to prevent the seller from carrying on a similar business. State laws specify that the non-compete is for the goodwill of a business so the contract needs to use the term “goodwill” to be enforceable.
- Dissolution of a partnership. When partners dissolve a business, the parties can agree to sign a non-compete agreement that prohibit each other from opening a new, similar business in the same area.
To be enforceable in these two circumstances, the non-compete agreement must include a specified duration and a specified geographic location. The contract needs to be reasonable in scope and cannot be too broad.
Unlike other states, California does not permit blue penciling. Courts cannot edit contracts to make an unenforceable contract enforceable.
How Long Does a Non-Compete for the Sale of a Business Last in California?
The maximum term that courts have ruled reasonable for a non-compete agreement for the sale of a business in California is five years. Non-competes can be longer or shorter than five years, but if a court determines that the duration is in anyway unreasonable, the contract may be deemed invalid and unenforceable.
Why Does California Not Allow Non-Compete Agreements?
California dos not allow non-compete agreements because the state recognizes the importance of allowing workers to pursue a career that allows them to earn a living and provide for themselves. Non-compete agreements can be overly restrictive and impose an undue burden on employees who are seeking new employment.
When an employee works in a specific industry, they gain knowledge, skill, and experience in that industry. An employee could spend years learning their trade and non-compete could potentially limit their ability to find a job that fits their skillset.
Furthermore, non-compete agreements often discourage workers from seeking new opportunities that could provide better pay, flexibility, or working conditions. If an employee fears legal repercussions, they might believe that their only option is to continue to work for their current company.
Frequently Asked Questions
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Meet some of our California Noncompete Agreement Lawyers
Anjali S.
Attorney licensed in California, New York, and Florida with over a decade of experience in technology transactions, data privacy, and intellectual property. I advise businesses on drafting, reviewing, and negotiating commercial agreements, including SaaS agreements, master services agreements (MSAs), vendor and procurement contracts, data processing agreements (DPAs), and intellectual property licensing arrangements. I hold the CIPP/US and CIPP/E privacy certifications and regularly support clients on matters involving data use, privacy considerations, and contract structuring in technology-driven business relationships. My approach is practical and business-focused, with an emphasis on clear guidance, efficient negotiation, and helping clients move forward with confidence.
"Anjali is beyond sharp, responsive, and--most importantly for my project--highly knowledgable in the entertainment and intellectual property spaces. I'd work with her again in a second."
Paul S.
I focus my practice on startups and small to mid-size businesses, because they have unique needs that mid-size and large law firms aren't well-equipped to service. In addition to practicing law, I have started and run other businesses, and have an MBA in marketing from Indiana University. I combine my business experience with my legal expertise, to provide practical advice to my clients. I am licensed in Ohio and California, and I leverage the latest in technology to provide top quality legal services to a nationwide client-base. This enables me to serve my clients in a cost-effective manner that doesn't skimp on personal service.
"Was my great pleasure working with Paul. He is very knowledgeable about startups/companies, professional, wise, and supportive. I would highly recommend him."
Briana C.
Legal services cost too much, and are often of low quality. I have devoted my law practice to providing the best work at the most affordable price—in everything from defending small businesses against patent trolls to advising multinational corporations on regulatory compliance to steering couples through a divorce.
"Briana was responsive and quick to put the draft together. It has been a pleasure working with her!"
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Meghan P.
I am a licensed attorney and a member of the California Bar. I graduated from the University of Dayton School of Law's Program in Law and Technology. I love IP, tech transfers, licensing, and how the internet and developing technology is changing the legal landscape. I've interned at both corporations and boutique firms, and I've taken extensive specialized classes in intellectual property and technology law.
"Meghan was great to work with! She understood everything perfectly and delivered greatly."
July 25, 2020
Kamilah H.
I am a top-performing bi-lingual legal services professional with a proven record of success. Reputation of assessing and evaluating client’s needs and providing individualized solutions in line with those needs while efficiently handling multiple tasks simultaneously. Able to create a collaborative work environment ensuring business objectives are consistently met. Seeking an attorney role within a legal setting to apply skills in critical thinking, executive communications, and client advocacy.
August 25, 2020
Rinky P.
Rinky S. Parwani began her career practicing law in Beverly Hills, California handling high profile complex litigation and entertainment law matters. Later, her practice turned transactional to Lake Tahoe, California with a focus on business startups, trademarks, real estate resort development and government law. After leaving California, she also served as in-house counsel for a major lending corporation headquartered in Des Moines, Iowa as well as a Senior Vice President of Compliance for a fortune 500 mortgage operation in Dallas, Texas prior to opening Parwani Law, P.A. in Tampa, Florida. She has represented various sophisticated individual, government and corporate clients and counseled in a variety of litigation and corporate matters throughout her career. Ms. Parwani also has prior experience with state and federal consumer lending laws for unsecured credit cards, revolving credit, secured loans, retail credit, sales finance and mortgage loans. She also has served as a special magistrate and legal counsel for numerous Florida County Value Adjustment Boards. Her practice varies significantly from unique federal and state litigation cases to transactional matters. Born and raised in Des Moines, Iowa, Ms. Parwani worked in private accounting for several years prior to law school. Her background includes a Certified Public Accountant (CPA) certificate from Iowa (currently the license is inactive) and a Certified Management Accountant (CMA) designation (currently the designation is inactive). Ms. Parwani or the firm is currently a member of the following organizations: Hillsborough County Bar Association, American Bar Association, Tampa Bay Bankruptcy Bar Association, National Association of Consumer Bankruptcy Attorneys, and the American Immigration Lawyers Association. She is a Fellow of the American Bar Association. Ms. Parwani is a frequent volunteer for Fox Channel 13 Tampa Bay Ask-A-Lawyer. She has published an article entitled "Advising Your Client in Foreclosure" in the Stetson Law Review, Volume 41, No. 3, Spring 2012 Foreclosure Symposium Edition. She is a frequent continuing legal education speaker and has also taught bankruptcy seminars for the American Bar Association and Amstar Litigation. She was commissioned by the Governor of Kentucky as a Kentucky Colonel. In addition, she teaches Immigration Law, Bankruptcy Law and Legal Research and Writing as an adjunct faculty instructor at the Hillsborough Community College Ybor campus in the paralegal studies program.
Adam B.
With over 25 years of experience in the technology sector, I am a strategic business counsel, outsourced general counsel, and a leader of high-performing legal teams aimed to help maximize the efficiency of all stakeholders. I recently joined the renewable energy space with the addition of a new client on its way to becoming the first Chinese battery company to build a battery manufacturing presence in the US beginning with a 1+ GWh cell and pack plant, and a domestic anode and cathode plant. In my most recent full-time role, I served as the Sr. Director and Assistant General Counsel at SMART Global Holdings, where I served as the general counsel for the HPC and AI division of this publicly traded holding company, comprised of four companies, before becoming the global head of the commercial legal function across all portfolio companies, including two multinational industry leaders. During much of my career, I provided outside legal services on a recurring basis for several years advising several high growth start-ups and venture firms as well as house hold names, and also led one of the country's fastest growing infrastructure resellers and managed services providers. My core competencies include contract review, commercial negotiation, legal operations, information security, privacy, supply chain and procurement, alliances and channel sales, HR, and general corporate. I am passionate about leveraging my legal skills to achieve business solutions, supporting innovation and growth in the technology sector, and helping maximize the commercial flow and efficiency at growing companies. I hold an undergraduate business degree, a JD, a MSBA Taxation, and certifications from the California Bar Association, Six Sigma, and ISM.
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Browse Lawyers NowLawyer Reviews for California Noncompete Agreement Projects
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"Delivered the scoped work product ahead of the agreed deadline. The memorandum was clear, well-organized, and the analysis was actionable. Texas covenant knowledge as advertised. One caution: the bid listed a deliverable that was later recharacterized, and all requests were answered with strict scope language. Ensure everything from the bid appears in the engagement letter before signing. Work quality: strong. Style: strictly transactional."
Reply From Philips V.
Thank you for taking the time to share your feedback. This engagement was a limited‑scope project focused on providing written legal analysis to the four specific questions in your bid request. You selected my bid after your clarifying questions were fully answered, and the engagement letter reflected that scope as written. The work product delivered matched the scope requested and agreed to in the engagement letter. Clear deliverables upfront make short, fixed‑fee engagements efficient and predictable, and they help ensure competitive bids are evaluated on a consistent scope. We all expect a level playing field with fixed goal posts. I am glad to hear the memorandum was clear, well organized, and actionable, and that the work quality and timeliness met your expectations. I appreciate the opportunity to assist with your Texas covenant review.
View MoreEmployment
Noncompete Agreement
Washington
Noncompete agreement and public policy?
I recently accepted a job offer with a new employer who asked me to sign a noncompete agreement. I am concerned that the agreement may not be in line with public policy and wanted to get a professional opinion from a lawyer to make sure I am not putting myself in a difficult situation.
Merry K.
If you are in Washington State, where I'm licensed, as opposed to D.C., please let me know what kind of help you are looking for - have you already signed the agreement? I've been a WA State attorney for nearly 38 years, and specialize in employment law.
Employment
Noncompete Agreement
Missouri
Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?
I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?
Matthew S.
No, this at worst is a civil matter and not a criminal matter. F
Employment
Noncompete Agreement
Colorado
Can I get out of my noncompete agreement?
I am looking at my options.
Donya G.
You may be able to be released from a non compete. You would have to review the language in the non compete to see the expiration. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.
Employee Rights
Noncompete Agreement
New York
Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?
I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?
Damien B.
Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.
Contracts
Noncompete Agreement
Florida
Noncompete agreement and severance packages?
I recently left my job of 5 years, where I had signed a non-compete agreement. I am now negotiating a severance package with my former employer and am unsure of what my rights and obligations are regarding the non-compete agreement. I am seeking clarification on how the non-compete agreement should be handled in relation to the terms of my severance package.
Diane D.
To be able to answer this question, I would need to see the agreements. No one can answer your question without seeing the agreements.
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
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Employment non compete question session
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Turnaround: Less than a week
Service: Drafting
Doc Type: Non-Compete Agreement
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Bid Range: $249 - $500
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