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

In California, employers are not allowed to require employees to sign a non-compete agreement. Non-compete agreements are a type of contract between an employer and an employee that restricts the employee from working for a competitor or starting his or her own business in the same market for a set period of time. Under the California Labor Code, any provision in an employment agreement that prohibits a former employee from engaging in certain employment or from working for certain employers is considered void and unenforceable. This means that employers cannot require employees to sign a non-compete agreement. This does not mean, however, that employers cannot offer employees incentives to stay with the company and not work for a competitor. For example, employers can offer employees a higher salary or other perks to stay with the company. It is important for both employers and employees to understand the laws regarding wages and hours in California. Employers must abide by the law and not require employees to sign a non-compete agreement. Employees should also be aware of the law so they can properly negotiate any agreements with their employer.

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

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