Usually, 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 can receive compensation for the agreement.

When are Covenants not to Compete Unenforceable?

It is difficult to discern whether a judge will enforce a given non-compete agreement. Even though the interests of an employer are significant, California courts value a person's freedom to select the type of employment that they desire. Thus, courts will typically uphold only those covenants not to compete that they conclude to be reasonable. Those agreements that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Norco that are unreasonably large.

Covenants not to compete are also required to deal only with competitors who are reasonably related to the employer's line of industry. Finally, there must be a valid business interest which motivates the employer's mandating a covenant not to compete.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

A Norco, California lawyer can help you review the covenant before you sign any provisions that might limit your rights. The lawyer can help you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. When it comes to suing an employee for breach of a non-compete clause, an attorney can provide valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.