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Q.Are noncompetition agreements enforceable in California?
A.Generally, No. As a general rule a covenant not to compete is unenforceable in California, unless the noncompetition agreement:
- is specifically limited to the release of trade secret information (employee may compete, but may not use company trade secrets);
- is connected with the purchase or sale of a business;
- is connected with a shareholder's sale of all, or substantially all, of his or her stock; or
- in contained in a partnership agreement that restricts withdrawing partners from competiting within a limited geographic area and for a limited time.
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