Are non-compete or arbitration agreements legal in California?
Contrary to the law in many other states, non-compete agreements are usually invalid in California. In many cases, you cannot be penalized for accepting a job from your ex-employer’s competitor or for working with the same clients after leaving a job-even if your employer required you to sign an agreement not to do so. However, you could still face restrictions. You can, for example, be barred from revealing confidential information or trade secrets from your former employer, or from using certain information, such as your previous employer’s confidential customer list, to solicit business. Some employers ask their employees to sign arbitration agreements, which require their employees to bring their workplace claims to a neutral third-party arbitrator rather than to court. Such agreements are generally enforceable in California, even for discrimination claims. But to be valid, the agreement must provide for a “fair” arbitration procedure. For example, the employee should not have to p
