3 ms·
Another touchy issue is non-competes after employment, meaning that "you can't work for anyone else or hire our employees." States such as CA are very much agai
by wyc 10y ago
Another touchy issue is non-competes after employment, meaning that "you can't work for anyone else or hire our employees." States such as CA are very much against anything that restricts someone's ability to engage in free trade, especially when the restrictions apply post-employment. Imagine how ridiculous it would be to ask this of independent contractors, whose roles are defined by that they engage with multiple clients at once and have looser associations--that is, they are independent. Yet I see a lot of CA contracts for independents hold this clause, and even argue for its fairness.
From the BAR[1]:
Not only are non-compete covenants void in California, but an employer may be
liable in tort for wrongful termination if it fires an employee who refuses to
sign an employment agreement that contains an unenforceable covenant not to
compete. D’Sa v. Playhut, Inc., 85 Cal. App. 4th 927 (Cal. Ct. App. 2000). This
rule holds even if the agreement contains a choiceof-law or severability
provision. Id. at 934. The concern is that the presence of an unenforceable
non-compete covenant in an employment agreement may have an undesirable
deterrent effect on employees who do not know their rights under California
law. “[I]t is not likely that [the defendant’s] employees are sufficiently
versed in California’s law of contracts such that they would know (1) that the
covenant not to compete is invalid and therefore not enforceable by [the
defendant] and (2) that they could sign the agreement without fear they would
be bound by the covenant not to compete.” Id
Read your contracts. Get attorney review and specifically ask about the parts that make you uncomfortable. If you're planning to make $XX,000 or more from this engagement, isn't it worth the $100-$300 for the guarantee?
[1]
https://www.americanbar.org/content/dam/aba/events/labor_law/2013/03/employment_rightsresponsibilitiescommitteemidwintermeeting/4_orrick.authcheckdam.pdf https://www.americanbar.org/content/dam/aba/events/labor_law...