Are employers allowed to impose non-compete clauses in an employment contract?

In California, employers are generally not allowed to impose non-compete clauses in an employment contract. A non-compete clause is a clause in an employment contract that prohibits a worker from competing with their former employer. Non-compete clauses are only enforceable if certain specific criteria are satisfied. These criteria are set out in California Business and Professions Code Section 16600. This section prohibits an employer from imposing a non-compete clause that would restrict a worker from engaging in a lawful profession, trade, or business. It is important to note that California is a very employee-friendly state, and that employers are not allowed to impose any restrictions on their employees that would limit their ability to obtain employment elsewhere. This includes non-compete clauses, which are prohibited by the California Business and Professions Code. Additionally, employees are protected by various other state and federal laws, such as the California Fair Employment and Housing Act and the National Labor Relations Act. Employers in California should also be aware that they may face civil penalties if they attempt to enforce illegal non-compete clauses. As such, employers are strongly advised to ensure that any non-compete clauses they include in an employment contract comply with the law in California.

Related FAQs

Are employers allowed to require employees to sign a contract for services?
Are employers allowed to require employees to sign a restrictive covenant?
Are employers legally obliged to carry out risk assessments for their employees?
Are employers obligated to provide a certain level of employee privacy?
Are employers allowed to require employees to take annual leave during specified periods?
How can an employer end an employment contract?
Are employers allowed to set performance targets for employees?
Are employers allowed to make deductions from an employee’s wages for unauthorised absences?
Are employers permitted to make deductions from wages in relation to disciplinary matters?
Are employers allowed to make deductions from an employee’s wages in order to cover costs?

Are employers allowed to impose non-compete clauses in an employment contract?

Related FAQs

Related Blog Posts