While there are California state laws located in the California Business and Professions code regarding the use of non-competition agreements, most California courts consider the documents as void. They are, by and large, considered banned. This also includes using non-California laws in the choice of law provisions or jurisdiction clause as a means of attempting to improve the enforceability as a California employer.
As a result, it is imperative to seek legal advice from a law firm in the State of California if you are interested in drafting a non-compete agreement or if you want to use a non-compete clause in your employment agreement.
Protect your California business by also using a California non-disclosure agreement form. Download a California non-disclosure agreement form now!
California courts consider the use of non-compete agreements void, except in very specific situations outlined in Sections 16600 through 16607 of California State Code (Business and Professions Code). If you choose to create a non-compete agreement or clause in California, ensure that you comply with these laws.
Both parties should retain a copy of the document for their records.