Non-Compete Agreement

A non-compete agreement (also known as covenant not to compete), protects your business from a loss of advantage when and if an employee leaves to find other work. By preventing competitors from gaining access to trade secrets, sensitive business information, and clients, your business is able to retain a competitive edge in the industry.

Non-compete agreements in California are typically only effectively used when selling a
Business. This prevents the former owner from starting a new company that competes directly with the old one, and from stealing clients from the former business when a premium has been paid in order to protect those interests.

In California, non-compete agreements are invalidated except in very limited circumstances. Therefore, employees need to know that such agreements are very strictly construed. The Courts are not keen on preventing a person from working in his chosen profession. When buying or selling a business interest, Mr. King drafts well-written documents that ensure both parties are satisfied with the terms of the agreement while keeping the arrangement in compliance with the law.

Nondisclosure, confidentiality, and nonsolicitation agreements, on the other hand, can be crafted to prevent trade secrets and loss of clients in a comparable fashion. Arbitration clauses are frequently included in these agreements, ensuring that a breach of the agreement can be settled without the expense and time required in court-litigation. However, even arbitrated matters can carry significant costs in their execution.

Whether you are crafting a non-compete agreement for current or future employees, are seeking arbitration against a breach of such a contract, or believe that the agreement you are being asked to sign by an employer is not legal under California law and require assistance, Mr. King is ready to assist you. Contact our office to arrange for a free, confidential legal consultation today.