Non Compete Agreement Validity

Summary

Non-compete agreements are generally unenforceable in California due to state laws, specifically California Business and Professions Code Section 16600. Exceptions exist for the sale of a business or dissolution of a partnership. In Texas, non-compete agreements can be enforceable if they meet specific criteria, such as being part of an enforceable agreement and having reasonable limitations on time, geographical area, and scope of activity. The enforceability of non-compete agreements varies by state, so its important to review the laws of each state where you work or have clients. Consider consulting a legal expert for specific concerns, especially if you work with clients in multiple states.

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I am a remote worker in California and my out of state employer had me sign a non compete agreement. To what extent is that agreement valid?
In California, non-compete agreements are generally unenforceable. Here are key points:
- California Business and Professions Code Section * makes most non-compete agreements void.
- Exceptions exist for sale of business or dissolution of a partnership.
- Employers cannot restrict employees from working for competitors.
Do you have any specific concerns about your agreement?
Is the agreement only invalid in California? Or is it invalid in any state?
In California, non-compete agreements are generally unenforceable due to state-specific laws. However, other states may enforce them under certain conditions. The validity of a non-compete agreement varies based on state laws. Are you concerned about how it might affect you if you work or move to another state?
What about if I still live and work in California but do some work for clients in other states?
When working for clients in other states, the enforceability of a non-compete agreement depends on the laws of those states. Some states may enforce non-compete agreements. It's important to review each state's laws where your clients are located. Do you have concerns about a specific state's laws?
What about Texas state law?
Case Rating: *
In Texas, non-compete agreements can be enforceable but must meet specific criteria:
- Must be part of an otherwise enforceable agreement.
- Must have reasonable limitations on time, geographical area, and scope of activity.
- Must protect a legitimate business interest.
If you have specific concerns about Texas laws, you might want to consult a legal expert.