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Non Compete
Anonymous13 views3 answers
I joined company X but due to differences with management I quit and joined their competitor.X had a non compete policy that stopped me from working for 1 yr with a competitor anywhere in this world as there business is global. I am confused as this company X is in new jersey while I was hired for california, even though the nature of job requires travelling. Can an employer enforce this non compete and sue for working for other company. Please advice.
To the extent that you are talking about working in CA, the non-compete provision will not be enforced - please see the post at the link below.
Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.
CA courts won't enforce non-competes, execpt where there's a business's seller is trying to compete with their buyer.
If you signed a non-compete, or the company has written non-compete policies, what does it say about what state's law governs and what state's courts are supposed to resolve disputes with the company? If it's CA, this company won't be able to enforce this 1 year moratorium or working for a competitor.
However, under CA law, the company can enforce other rights, such as preventing you from misappropriating its proprietary trade secrets and raiding its employees.
See a business lawyer to get the contract/policies reviewed and to get the details of your situation.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
While I agree with my colleagues about California law not recognizing non-compete agreements, many other states do. And this can create a problem if X company chooses to file suit in another state, such as its home state, seeking an injunction against you. If they succeed, you may be prevented from working for your new company outside California. To make things even more complicated, if they file the sister-state judgment with a California court, the injunction must enforced here too.
These are issues that must be reviewed with your new employer's legal counsel, who will be more familiar with the facts and potential liabilities. Since your new employer would also be named in any lawsuit, you will need to map out legal strategy with their counsel, to have any chance of continuing employment with this company.
