Non-Compete Agreement (California)
A contractual restriction preventing one party from competing with another after employment or sale. In California, non-compete agreements between employers and employees are generally void and unenforceable under Business & Professions Code §16600 — one of the strictest non-compete prohibitions in the country. The major exception: non-competes signed in connection with the sale of a business are enforceable for a reasonable geographic and time scope. This dramatically affects how California businesses are sold and how key employees can be retained.
Where This Matters
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