Los Angeles Non Compete Lawyer

Los Angeles Non-Compete Attorney

The trend of employers using non-compete agreements has increased in recent years. Employers require their workers to sign these agreements to prevent competitors from learning company secrets. At the same time, these agreements are often quite restrictive and prevent skilled employees from growing in their careers. If you believe that you are subject to a non-compete agreement, contact a Los Angeles non-compete lawyer to understand your legal options.

Most importantly, non-competition clauses are not enforceable in the state of California. This applies to agreements that have already been signed and to any type of employee, including independent contractors. Even if the agreement was signed in another state, if an employee moves to California after they sign the agreement, it becomes void.

Protect Yourself Against Employers

Shirazi Law Firm, PC, is used to fighting for the rights of employees and independent contractors. We take an individual approach to every case so we can fully recover the damages that our clients deserve. Shirazi Law Firm, PC, has experience with cases regarding employee discrimination, non-competition clauses, prevailing wages, and more.

Emanuel Shirazi blends his experience working at a large law firm with the attention to detail that a smaller firm can provide. He thoroughly analyzes each case and aggressively fights large businesses to stand up for the rights of his clients. Contact Shirazi Law Firm, PC, to learn more about how we can effectively represent your case.

What Is a Non-Compete Agreement?

A non-competition agreement is an agreement that many companies force employees to sign before beginning work. It usually limits the amount of employment opportunities for workers after they leave the company by restricting them from working with companies in the same industry for a certain amount of time. Due to the restrictive nature of these agreements, the state of California banned the use of non-compete agreements entirely.

This is different from a non-solicitation or a non-disclosure agreement. Non-solicitation agreements prevent employees from doing business with a company’s clients after leaving the company. These agreements are also unenforceable in California. Non-disclosure agreements prevent the employee from revealing particular pieces of confidential information. These contracts are usually enforceable in California.

Why Do I Need an Attorney?

Just because non-compete agreements are illegal in California does not mean that employers won’t try to get you to sign one. If an employer attempts to force you to sign a non-compete or non-solicitation agreement before working with the company, they might be subject to punishment by the state. Working with a labor lawyer can help you determine whether to file a claim with the Attorney General about an illegal non-compete clause.

An attorney can also help if you are being sued for breaching a non-compete agreement. Getting sued can be scary, but a lawyer can help get your case dismissed if it regards a non-compete agreement. If this claim negatively impacted your life, you might even be able to recover damages from the adverse event. Contact an employment lawyer today to review your options.

Exceptions to Non-Competes

There are some rare exceptions to non-compete agreements that make them legally enforceable in California. These exceptions include:

• Sale: If a partner sells their shares in a business, they might not be able to work for another company for a certain period of time to prevent secrets from being shared.
• LLCs: If an LLC dissolves or if a partner in an LLC leaves, a non-compete agreement may be possible to prevent an important partner from starting a new company with information from the dissolved LLC.
• Goodwill: There are limits to a former employee using the name and reputation of the company to advance their own interests. The reputation of a company is also known as its goodwill.

What About Non-Traditional Employees?

Independent contractors and subcontractors often have different rules about employment, but the California ban on non-compete agreements applies to all workers, including non-traditional employees. If the contractor lives in Los Angeles, California, this can also affect the contracts they sign outside their home state. Contact an employment attorney to discuss your non-compete clause as an independent contractor or subcontractor.

FAQs

Q: Are Non-Competes Enforceable in LA?

A: The state of California does not allow for the enforcement of non-compete agreements if they limit an employee’s job mobility in the future. There are specific exclusions to this rule, but they typically only apply if a business fails or is sold. If you signed a non-compete agreement in California, you might be able to file a claim with the Attorney General’s office. Contact an employment attorney to discuss your specific options.

Q: Do Non-Competes Hold Up in California Courts?

A: Non-competition agreements are not legally enforceable in California. An additional bill regarding this was recently signed into California law, stating that all non-competition agreements are void, including ones that were signed in different states before the individual moved to California. This means that a company cannot sue California residents for violating a non-competition agreement, except in very specific circumstances.

Q: Is My Non-Compete Void If I Move to California?

A: The recent signing of Senate Bill 699 prevents companies from enforcing non-compete agreements with employees if they move to California, regardless of the state where the agreement was originally signed. This law also requires employers to let their employees know if they signed a non-compete agreement that is now legally void. If you have questions about your non-compete agreement in Los Angeles, contact an employment lawyer.

Q: Are Non-Competes Enforceable in California for Subcontractors?

A: Subcontractors are often not subject to the same non-compete agreements as traditional employees are. However, the state of California does not allow non-compete agreements for any employee, including subcontractors and independent contractors. If a subcontractor has contracts in states that still enforce non-compete agreements, they might still be subject to the terms in those contracts. In California, a business can be punished if it requires employees to sign or obey a non-compete clause.

Learn About Your Obligations

An attorney can help if you need assistance understanding what type of contract you signed and whether it is legally enforceable in California. Contact Shirazi Law Firm, PC, today to determine the specific legal requirements of your contract.