Los Angeles Non-Competition Agreement Lawyer

Non-competition agreements are a common feature in many employment contracts, but their enforceability and scope vary widely depending on state laws. For individuals in Los Angeles navigating issues related to non-compete clauses, having an experienced Los Angeles employment law attorney on your side is crucial. Arrange a free consultation with Aegis Law Firm today by calling (949) 379-6250 or contacting us online. 

Why Choose Aegis Law Firm?

• We have a 99% case success rate and have secured more than $300 million in compensation for our clients. 
• Our legal team crafts unique strategies designed to address the unique aspects of your case, ensuring our approach aligns with your objectives and priorities.
• Although we aim to resolve disputes amicably through negotiation whenever possible, our attorneys are experienced litigators and fully prepared to advocate for you in court when necessary.

Enforceable Types of Non-Competition Clauses

Non-competition agreements are generally unenforceable under California Business and Professions Code Section 16600, as the state prioritizes employee mobility and the free flow of talent. However, there are the following exceptions where non-competition clauses may be enforceable:

Non-Compete Clauses in the Sale of a Business

• Under California Business and Professions Code Section 16601, non-compete clauses are enforceable when included in the sale of a business.
• The seller of a business may agree not to compete with the buyer within a reasonable geographic area and time frame, protecting the buyer’s investment in the business’s goodwill and customer base.
• This applies to the sale of:
  • The entire business
  • A substantial portion of the business’s operating assets
  • Ownership interests (e.g., shares or partnership interests)

Non-Compete Clauses in the Dissolution of a Partnership

• California Business and Professions Code Section 16602 allows enforceable non-compete clauses when a partnership dissolves.
• Partners may agree not to compete with the partnership or with other partners to avoid unfair competition during or after the dissolution process.

Non-Compete Clauses in the Dissolution of a Limited Liability Company (LLC)

• Under California Business and Professions Code Section 16602.5, members of an LLC can agree to non-compete clauses during the dissolution or termination of the LLC.
• These clauses aim to protect the remaining members or new owners from unfair competition by departing members.

These exceptions are narrowly defined and subject to strict scrutiny by California courts.

Related Clauses That May Be Enforceable:

Employers can use other legal agreements to protect their interests:

• Non-Disclosure Agreements (NDAs): Prevent employees from sharing confidential information or trade secrets.
• Non-Solicitation Clauses: Restrict employees from soliciting clients, customers, or other employees. However, recent California case law has increasingly limited the enforceability of non-solicitation clauses.
• Trade Secret Protections: Employers can rely on the California Uniform Trade Secrets Act (CUTSA) to prevent employees from misappropriating proprietary information.

Issues Arising from Non-Competition Clauses

These agreements can create significant challenges for both employers and employees. Common issues include: 

Pressure to Sign Invalid Agreements

Employers may include non-compete clauses in contracts, even though they are unenforceable in California. Employees often feel pressured to sign these agreements without fully understanding their rights or the legal limitations of such clauses.

Misuse of Non-Compete Clauses

Employers sometimes use non-competes as a scare tactic to discourage employees from pursuing opportunities with competitors or starting their own businesses.  Employees may feel restricted despite the legal invalidity of the clause.

Impact on Job Mobility

Employees may avoid pursuing positions with competitors due to fear of legal repercussions, even when the clause is unenforceable. This can limit career advancement and earning potential.

Confusion About Related Agreements

Non-compete clauses are often bundled with enforceable agreements, such as non-disclosure agreements (NDAs) or non-solicitation clauses, creating confusion about which terms are legally binding. Employees may unknowingly comply with restrictions that are not enforceable under California law.

Threats of Legal Action

Some employers threaten to enforce non-compete clauses, leading to unnecessary legal disputes or intimidation tactics. Employees may feel obligated to comply rather than challenge the agreement due to the cost and time of legal proceedings.

Limited Knowledge of Rights

Many employees are unaware that non-compete clauses are largely unenforceable in California, leaving them vulnerable to employer demands.Without proper legal guidance, employees may unnecessarily comply with restrictive terms.

How Can Our Los Angeles Non-Competition Agreement Attorneys Help?

A skilled Los Angeles non-competition agreement lawyer can provide valuable support and representation in the following ways:

Evaluating the Enforceability of Your Agreement

A non-compete agreement lawyer can:

• Review your contract to determine if the non-compete clause complies with California law.
• Identify unenforceable provisions and advise you on your rights and options.
• Provide clarity on related agreements, such as non-solicitation or confidentiality clauses.

Protecting Your Career Mobility

Non-compete clauses often create fear and uncertainty about your ability to work in your industry. A lawyer can:

• Assess whether the restrictions in your agreement, such as time limits or geographic scope, are overly broad or unreasonable.
• Advise you on how to transition to a new role or start a business while minimizing potential legal risks.
• Help you navigate challenges from a current or former employer seeking to enforce a non-compete.

Challenging Unfair Non-Compete Clauses

If your employer attempts to enforce an invalid or overly restrictive non-compete, a lawyer can:

• Challenge the agreement in court or negotiate its terms with your employer.
• File claims against the employer for wrongful enforcement, especially in California where such actions may violate public policy.
• Protect you from retaliatory actions, such as wrongful termination or legal threats, for refusing to comply with an invalid non-compete.

Assisting with Contract Negotiations

When signing a new employment contract or severance agreement, a lawyer can:

• Negotiate terms to ensure that any restrictive covenants, such as non-competes, align with your career goals and comply with the law.
• Advocate for the removal or modification of non-compete clauses that could unfairly limit your future opportunities.
• Review severance agreements to protect your rights as you transition out of a role.

Providing Legal Representation in Disputes

If a dispute arises over your non-compete agreement, a lawyer can:

• Represent you in negotiations, mediation, or litigation to resolve the conflict.
• Defend you against claims of breach of contract or trade secret misappropriation.
• Pursue claims for damages if an employer’s enforcement of an invalid non-compete caused you harm.

Contact Aegis Law Firm Today

Whether you need to negotiate contracts, resolve disputes, or pursue legal remedies, our non-competition agreement lawyer in Los Angeles can ensure that your rights are protected and that you receive fair treatment in the workplace. Call (949) 379-6250 or send us a message online to arrange a free consultation today.