18. What happens to me if I violate the non-compete agreement by letting my employer work in the same sector? Although, in most cases, California law does not authorize the application of a non-compete clause, there are limited exceptions where you find yourself in a situation where an employee living in another state has breached a non-compete clause that is effectively applicable. In contract law, a non-compete clause (often NCC) or a non-compete agreement (CNC) is a clause whereby a party (usually a worker) agrees not to enter a similar profession or trade in competition with another party (usually the employer). Some courts call them “restrictive alliances.” As a contractual provision, a CNC is bound by traditional contractual requirements, including consideration. Each state has its own standards regarding the validity of non-competition clauses. For specific information on your state`s non-compete obligations and pending laws, please contact a lawyer in your state. At the federal level, the White House released a 2016 report on non-competitive employment contracts, which says they can “impose significant costs on workers, consumers and the economy in general. CONSULT AN ATTORNEY Non-competition prohibitions vary considerably from state to state and our legal system attaches great importance to a person`s right to earn a living. Given that the judicial climate is somewhat weighted in relation to a business or business, it is particularly important that a competent lawyer develop a non-competition agreement that is informed by the relevant regional laws. Whether a CPA wants to protect its own business, is employed in the industry or advises a client company, the following advice applies: Noncompete Agreements – An Overview by William M. Corrigan Jr., www.mobar.org/journal/1998/mayjun/corrigan.htm . The applicability of these agreements depends on the law of each state.
However, as a general rule, with the exception of invention transfer agreements, they are subject to the same analysis as other CNCs If, during the period of competition, the employer requests the termination of the competition agreement, the People`s Court supports this petition.