Question

Do you agree with California public policy against non compete agreements? As a current of future business owner, under what scenarios would you find it to be advantageous to have an enforceable non compete agreement?

Answer 1

A non compete agreement is a contract where the employee promises to stay away from any kind of competition with the employer after the term period is over and also not to share any kind of proprietary information of the organization to anyone during the term period and after leaving the company. This helps to take legal action against those who violate the terms and conditions. California invalidates all non compete agreement except for equity stake holders. The major advantage of non compete clause is that it protects the rights of businesses. That is an employee can't leave his job and immediately can't start a new business to compete his employer. This helps the businessmen to protect their business secrets .