What are the laws concerning non-compete agreements?

Non-compete agreements are contracts in which a worker agrees not to compete with their employer for a certain period of time or in a certain geographic area. In California, non-compete agreements are not typically enforceable. This is because the California Supreme Court has held that the public policy of the state favors open competition and free access to the marketplace. However, non-solicitation agreements are typically enforceable, which means that a worker cannot take customers away from their former employer or contact former co-workers with an offer of employment. Additionally, trade secrets, such as customer lists and confidential information, must be kept confidential even after employment ends. Employers are also required to notify workers in writing that they are signing a non-compete agreement, and employees must be given adequate consideration in exchange for signing. This means that the employer must offer something of value, such as additional pay or stock options, in exchange for signing the agreement. Finally, employers are also not allowed to require workers to sign non-compete agreements that would prevent them from working in a particular area or industry within California. Any agreement that does so would be unenforceable. In summary, non-compete agreements are generally not enforceable in California, but non-solicitation agreements and confidentiality agreements are typically enforceable. Employers must also ensure that their non-compete agreements are not too restrictive and that the employee is given adequate consideration for signing.

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