Can a California employee sign a non-compete agreement?

Can a California employee sign a non-compete agreement?

If California law is applied, the non-compete provision was illusory, and Miles is free to accept employment with a NuVasive competitor.” California’s amendments to the Labor Code adding Section 925 became effective after Miles signed the agreement.

What is a non-compete clause in an employment agreement?

The agreement included a covenant not to compete, under which Miles agreed not to “provide any services to any business operating in any line or type of business conducted by NuVasive or its subsidiaries” for one year following termination of his employment. The parties negotiated the employment agreement in California.

Can a non-compete agreement be upheld in court?

Non-compete agreements are controversial, as they are very restrictive and prevent employees from certain actions if they want to avoid legal trouble. However, these agreements are very difficult to uphold in court because the employer must show that the employee caused damages as a result of breaching the non-compete agreement.

When was section 925 added to California Labor Code?

Some were successful, while others were not. In light of this uncertainty, and to protect its residents’ rights to employment, California subsequently amended the California Labor Code, effective Jan. 1, 2017, to add Section 925.

If California law is applied, the non-compete provision was illusory, and Miles is free to accept employment with a NuVasive competitor.” California’s amendments to the Labor Code adding Section 925 became effective after Miles signed the agreement.

The agreement included a covenant not to compete, under which Miles agreed not to “provide any services to any business operating in any line or type of business conducted by NuVasive or its subsidiaries” for one year following termination of his employment. The parties negotiated the employment agreement in California.

Non-compete agreements are controversial, as they are very restrictive and prevent employees from certain actions if they want to avoid legal trouble. However, these agreements are very difficult to uphold in court because the employer must show that the employee caused damages as a result of breaching the non-compete agreement.

Some were successful, while others were not. In light of this uncertainty, and to protect its residents’ rights to employment, California subsequently amended the California Labor Code, effective Jan. 1, 2017, to add Section 925.