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Generally, but not in all cases. IANAL, but if you are an officer or key employee of a company that's acquired, the acquirer can enforce non-competes because it
by buymorechuck 11y ago
Generally, but not in all cases. IANAL, but if you are an officer or key employee of a company that's acquired, the acquirer can enforce non-competes because it affects the value of the acquisition. There's a specific section of the California employment code that talks about this, but I don't have it handy right now.
- hwstar 11y agoBusiness and Professions Code 16600 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=16001-17000&file=16600-16607 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&gr...
- yebyen 11y agoThank you! I was going to give another "not a lawyer but" reply, since I had heard that the only conditions in which a non-compete could be legal in California was if the owner of the business was selling his stake along with his own good-will, and then could be barred from competing as part of the terms of the agreement of sale. But at a glance that's only 16601 from the page you linked, the page goes on for another 6 whole sections of code after that. So, there are more ways it can be legal in CA.