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FYI . . .

California Prohibits Non-Competition Agreements
Employers frequently are unaware that non-competition agreements are prohibited under California law. In fact, this is one of the most common mistakes employers make. The California Business and Professions Code Section 16600 provides that every contract by which anyone is restrained from engaging in a lawful profession, trade or business of any kind, is void. Courts have construed Section 16600 to prohibit non-competition agreements. In fact, California non-competition agreements are strictly weighted against the employer. California has a strong public policy to ensure employees will not be prevented from earning a living if they choose to leave a particular job. In addition, California employers who terminate an employee for refusing to sign a non-competition agreement may be liable for wrongful termination in violation of public policy.


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