Are employers allowed to require employees to sign a non-compete agreement?

In California, the enforceability of non-compete agreements are generally unenforceable due to the state having laws that limit the amount of restrictions employers can place on their former employees. These laws are in place to protect businesses from unfair competition. Under California’s “Business and Professions Code” employers cannot require their employees to sign an agreement that restricts their ability to work for another company after leaving their current position. However, employers may enter into non-compete agreements with certain employees, such as key personnel or high-ranking executives. If an employee does sign a non-compete agreement, the employer must first provide the employee with some form of compensation or consideration in order for the agreement to be legally enforceable. Additionally, the agreement cannot be overly restrictive and must be limited in scope and duration. Companies must also ensure that the agreement does not conflict with the public policy of the state, or violate any other applicable laws. In general, it is highly unlikely that a non-compete agreement will be enforced in California, as employers must meet a number of specific requirements for a contract to be legally binding. Therefore, employers should be aware that attempting to require an employee to sign a non-compete agreement could put them in legal jeopardy and may not be upheld.

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Are employers allowed to require employees to sign a non-compete agreement?

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