Question 1

Does California enforce non-compete clauses?

Accepted Answer

California generally DOES NOT enforce non-competes. California Business & Professions Code § 16600 prohibits contracts that restrict an employee's right to work in their profession or trade. Any non-compete that says "you cannot work for competitors after leaving" is likely unenforceable. However, California DOES enforce: (1) non-solicitation clauses (don't recruit my employees/clients), (2) confidentiality agreements (don't share trade secrets), (3) non-competes connected to sale of a business.

Question 2

What are the exceptions to California's non-compete ban?

Accepted Answer

Non-competes ARE enforceable in California in these rare cases: (1) Sale of a business — if you sell your company, you can agree not to compete. (2) Sale of a partnership interest — similar to business sale. (3) Dissolution of a partnership — partners can restrict each other. But these apply to BUSINESS SALES, not employment. An employment non-compete is almost always unenforceable.

Question 3

What if I signed a non-compete in California?

Accepted Answer

The non-compete is likely unenforceable and you can ignore it. If your employer threatens legal action, you can affirmatively argue that it violates § 16600. You don't need to wait for them to sue — you can proactively file a declaration of non-enforceability. Many employment lawyers will send a simple letter citing § 16600 and the clause is withdrawn. If they do sue, they almost always lose.

Question 4

What about non-solicitation and confidentiality in California?

Accepted Answer

Non-solicitation clauses ARE enforceable in California if they're reasonable in scope (time, geography, employee list). Confidentiality agreements ARE enforceable if they protect genuine trade secrets. So while your non-compete is unenforceable, your non-solicitation and confidentiality clauses likely ARE enforceable. Review those carefully.

Question 5

How should I negotiate a non-compete in California?

Accepted Answer

Strategy: (1) Point out it's unenforceable under § 16600. (2) Propose removing it entirely. (3) If employer insists, propose a narrower time-limited non-solicitation instead. (4) Get a written acknowledgment that the clause is not enforceable under California law. In practice, most California employers accept this because they know it won't hold up. Mention you've reviewed it with counsel — that usually closes the discussion.

Non-Compete Clauses in California: Are They Enforceable?

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