4 ms·
You can still enter into a legally binding non-compete in California resulting from the acquisition of a company or IP.
by everdev 8y ago
You can still enter into a legally binding non-compete in California resulting from the acquisition of a company or IP.
- oppositelock 8y agoThis is true, but they must compensate you for the time you aren't allowed to compete. No such thing here in CA as a free non-compete.
- airstrike 8y agoThat seems reasonable if the goal is to not pose an impossible hurdle to any potential acquisitions involving companies with employees in California. Seems more reasonable than locking employees up as part of hiring
- ummonk 8y agoOnly if you're one of the executives.
- cortesoft 8y agoYeah, the big difference is that they pay for that time, and the time is a known quantity when you make the agreement. The banned non-competes are the ones where they say, “if you decide to leave at any point in the future, you can’t compete with us for x number of years”... but they won’t give you extra money during that time.
- everdev 8y agoYes, it's "valuable consideration" usually included in the sale price. It doesn't have to come in the form of a monthly payment or a salary.
- User23 8y agoCalifornia has a lot of questionable legislation, but they really did nail this one. It's extremely well thought out and the exceptions where non-competes can be enforced all make perfect sense. For example, a non-compete is legally binding in California is if you sell your business to someone else. Then they can enforce an agreement against your starting a new business competing against the business you just sold them.