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 may 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 important, 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. 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 Winters.

Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a rational way to the employer's industry. Finally, an employer is required to have a valid business reason in its motivation for imposing a covenant not to compete on an employee.

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

Before signing anything that may restrict your rights, you may want to hire a Winters, California attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or may even draft a new one that is acceptable to both parties When it comes to suing an employee for breach of a non-compete clause, an attorney can give valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.