4 ms·

For employees. There are absolutely noncompetes in California for people who sell their businesses. http://codes.findlaw.com/ca/business-and-professions-code/b

• trevyn 10y ago
  Question: If you're a rank and file employee who has exercised options, and are therefore a (very small) shareholder, does this apply to you?
  • khuey 10y ago
    IANAL, but the plain text of the statute says: "For the purposes of this section, “owner of a business entity” means ... or any owner of capital stock, in the case of a business entity that is a corporation. For the purposes of this section, “ownership interest” means ... or a capital stockholder, in the case of a business entity that is a corporation." So it certainly seems possible. Note that you would have to "sell or otherwise dispos[e] of all of his or her ownership interest in the business entity" in order for this code to apply. So it sounds like it may be possible for a company to include a non-compete in an offer to buy back your shares. Again IANAL and this is not legal advice.