ARE NON-COMPETE AGREEMENTS ENFORCEABLE?
Despite what most high-tech employers think, California courts are extremely reluctant to enforce a non-compete agreement that an employee signs as a condition of his/her employment. California Business and Professions Code Section 16600 provides that subject to certain limited exceptions “every contract by which anyone is restrained from engaging in a lawful profession, trade or business of any kind is to that extent void.” Thus, the general rule is that a non-compete agreement is void as a matter of law and California courts will not enforce it. The reason is a public policy against contracts preventing people from earning a living. A non-compete agreement IS enforceable under certain, limited conditions In determining whether an exception to non-compete agreements being void the California courts apply a balancing test with the courts being willing to uphold reasonable limited restrictions. Exceptions California law provides for certain limited exceptions to the rule that non-compet
