What Is A Covenant Not To Compete In California?
Generally, a covenant not to compete is when a California employee agrees not to work for an employer's competitors when the employee leaves the company. Covenants not to compete are also known as "non-compete clauses". An employee who signs them either does so as a condition to employment or they may receive compensation for the agreement.
When are Covenants not to Compete Unenforceable?
It is difficult to foresee whether a judge will enforce a given non-compete agreement. While the employer?s interests are important, California courts place great importance on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an excessively long period of time or if they cover an unreasonably large geographic area around Long Beach.
Covenants not to compete are also required to deal only with competitors who are rationally related to the employer's line of industry. Lastly, the employer needs to have an acceptable business interest which justifies their motives in requiring their employee to sign a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
A Long Beach, California lawyer can help you review the covenant before you sign any documents that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. A lawyer can also render useful advice for employers who are considering suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.
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Life in Long Beach
Long Beach, California is best known as "the LBC" by rap and pop music fans. Long Beach is actually the 7th largest city in California with just under 500,000 residents. Recently, Long Beach was named the "Aquatic Capital of the Nation" because the Port of Long Beach is one of the world's largest container ports and plays a substantial part in the global economy. The City of Long Beach is does not only revolve around the port. Many oil, aircraft, automobile, electronics, and home furnishings manufacturing plants are located in Long Beach. The city has seen an influx of new residents since the aerospace and other technology industries have begun to boom. In fact, Boeing produces DC-8s, DC-9s, DC-10s, MD-11s, C-17s, and the Boeing 717 all from their Long Beach production plants. Boeing is the second largest employer in Long Beach in front of California State University Long Beach and behind the Log Beach Unified School District.Long Beach has obviously made production and transportation one of the cornerstones of the economy so you shouldn't be surprised to find the bevy of ports, busses, airports, freeways, highways and bike paths that have been masterfully incorporated into the city's design. Long Beach announced its vision to become the most bicycle friendly city and has really followed through. The city has identified traffic routes and destinations and created bike routes that are convenient and illustrated on the Long Beach City Bike Map for tourists and locals alike.
