Understanding Non-Compete Agreements
Noncompete and nonsolicitation agreements are designed to limit what employees or contractors can do after leaving a company. A noncompete agreement typically restricts someone from joining a competing business or starting one of their own in the same industry, while a nonsolicitation agreement prevents them from contacting or recruiting former clients, customers, or coworkers.
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Noncompete Agreements Are Usually Void in California
In California, most noncompete agreements are void and unenforceable under Business and Professions Code §16600, as well as AB 1076. Further, SB 699 gives workers a private right of action and reaches agreements that are signed outside the state.
State law strongly favors employee mobility and open competition, ensuring workers have the freedom to pursue their chosen careers. There are only narrow exceptions, such as agreements connected to the sale of a business, the dissolution of a partnership, or the termination of an LLC, where restrictions may be allowed to protect the value of a business transaction.
California’s public policy is clear: The state encourages innovation, fair competition, and employee opportunity rather than limiting them through restrictive covenants.
Where ARCH Legal Can Help You
ARCH Legal has developed strong skills and experience to help employees and businesses navigate these complex laws. Our noncompete and nonsolicitation attorneys advise on drafting, reviewing, and disputing noncompete and nonsolicitation clauses, ensuring compliance with California law while protecting your professional and business interests. Our attorneys will pursue compensation for any harm you have suffered related to non-compete and non-solicitation agreements.
Non-Solicitation Agreements and Employee Restrictions
A non-solicitation agreement is a contract provision that restricts former employees or contractors from contacting, recruiting, or doing business with their previous employer’s clients, customers, or employees after leaving the company. Employers often use these agreements to protect relationships and maintain workforce stability. However, in California, such provisions are heavily scrutinized due to the state’s strong policy favoring open competition and employee freedom.
How California Courts Treat Non-Solicitation Clauses
California courts frequently treat non-solicitation clauses much like non-compete agreements, meaning they are often unenforceable under Business and Professions Code §16600. Recent cases, such as AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., reaffirm that restrictions limiting a person’s ability to engage in lawful work may violate state law.
Exceptions and Trade Secret Protection
An exception may arise if the non compete contract dispute involves the misuse of trade secrets or confidential business information. In such cases, an employer may pursue legal action to protect proprietary data, but only if the restriction is narrowly defined and justified.
Narrow Tailoring and Reasonableness
For a non-solicitation clause to survive scrutiny, it must be reasonable in duration, geographic reach, and scope, and directly tied to protecting legitimate business interests — not merely to limit fair competition.
How ARCH Legal Can Help
ARCH Legal advises employees and employers on reviewing, drafting, and challenging noncompete, nonsolicitation, and confidentiality provisions. Our firm ensures that noncompete nonsolicitation confidentiality agreements comply with California law while protecting employees’ rights and business integrity.
Employment Contracts and Restrictive Covenants
Such agreements in California frequently contain restrictive covenants, including non-compete, non-solicitation, and confidentiality clauses. These provisions are designed to protect an employer’s business interests by limiting an employee’s actions after leaving the company—such as working for a competitor, contacting clients, or sharing sensitive information.
California’s Stance on Enforceability
Under California Business and Professions Code §16600, most noncompete and nonsolicitation clauses are void and unenforceable because they restrict an individual’s ability to engage in lawful employment or trade. The state’s strong public policy promotes open competition and employee mobility. Only narrow statutory exceptions apply, such as those related to the sale of a business, partnership dissolution, or LLC termination.
The Role of Confidentiality and Invention Assignment Agreements
While restrictive covenants are limited, confidentiality and invention assignment agreements remain valid and enforceable tools for employers. These contracts protect trade secrets, proprietary information, and intellectual property developed during employment — without unlawfully restricting future job opportunities.
The Importance of Understanding Employment Contracts
Employees should carefully review all restrictive terms before signing any agreement to avoid potential disputes or misunderstandings later.
Our noncompete nonsolicitation lawyers provide invaluable legal assistance to employees and employers in drafting, reviewing, and resolving disputes involving restrictive covenants. Our attorneys ensure your contracts comply with California law while effectively protecting your professional and business interests.
Business Considerations
Businesses operating in California must ensure their employment practices comply with the state’s strict prohibition on non-compete agreements. Using or attempting to enforce void restrictive covenants can expose companies to costly litigation and regulatory penalties. Contracts that violate California Business and Professions Code §16600 are not only unenforceable but may also damage employee trust and reputation.
Focusing on Legal Protections
Instead of relying on broad non-competes, businesses should prioritize trade secret protection, non-disclosure agreements (NDAs), and confidentiality policies. These tools safeguard valuable business information without infringing on employee rights or violating state law.
Limited Exceptions
Non-compete provisions are permissible only in narrow situations, such as during the sale of a business, dissolution of a partnership, or termination of an LLC. Outside these exceptions, restrictive covenants are generally void.
Risks of Enforcing Void Agreements
Employers who attempt to enforce unlawful non-competes risk lawsuits, financial penalties, and reputational harm. Courts often side with employees in such disputes.
ARCH Legal’s noncompete nonsolicitation lawyers advise businesses on legally compliant strategies to protect their competitive edge. Our skilled attorneys craft customized agreements that preserve confidentiality and intellectual property while fully adhering to California employment laws. We have taken on national and multinational employers in related litigation, and are always willing to go to trial if that is the best option for a favorable outcome.
Legal Guidance and Compliance
Navigating complex restrictions on noncompete and nonsolicitation agreements requires experienced legal guidance. Both employers and employees benefit from consulting a knowledgeable noncompete and nonsolicitation lawyer to understand their rights and obligations under state law.
Challenge Restrictive Employee Covenants
ARCH Legal assists employees in challenging unlawful restrictive covenants that may limit their ability to work, compete, or grow their careers. Our firm’s noncompete, nonsolicitation, and confidentiality attorneys carefully review contracts, identify illegal provisions, and advocate for clients facing enforcement threats or retaliation. Our goal: to protect employees’ freedom to pursue new opportunities without violating valid confidentiality duties.
Draft and Refine Compliant Confidentiality Agreements
For employers, ARCH Legal helps draft and refine legally compliant agreements that prioritize confidentiality, nondisclosure, and trade secret protection — the enforceable methods for safeguarding legitimate business interests. By focusing on these lawful measures, businesses can avoid the risks associated with void or overbroad restrictions.
State employment laws continue to evolve, with recent court decisions narrowing the scope of enforceable post-employment restrictions. Staying current is essential to prevent disputes and ensure compliance.
As a trusted employment law firm, ARCH Legal provides practical, up-to-date advice that reduces legal risk, supports fair competition, and protects the rights of both employers and employees.
Let Us Fight For You
One lawyer or one law firm cannot right all the injustices in the working world. That doesn’t stop us from trying. Employment laws exist to protect workers and clarify employers’ responsibilities.
When our clients experience wrongdoing on the job, we are ready to take on their causes and win. We pride ourselves in our ability to turn things around for employees and help them get the compensation they deserve.
Why You Should Choose ARCH Legal for Your Noncompetes Nonsolicitation Case
ARCH Legal is a San Diego-based employment law firm with extensive experience navigating California’s unique restrictions on noncompete and nonsolicitation agreements. Our firm’s attorneys possess in-depth knowledge of Business and Professions Code §16600 and related case law, which form the foundation of California’s strong public policy favoring employee mobility and fair competition. This expertise allows our law firm to craft effective strategies for clients while ensuring complete compliance with state law.
Experience Protecting Employers and Employees
ARCH Legal has successfully represented both employees and employers in complex disputes over restrictive covenants. For employees, the firm works to invalidate or defend against unlawful noncompete or nonsolicitation clauses that restrict career advancement. We also frequently leverage SB 699 to seek damages for employees for interference.
For employers, ARCH Legal designs and enforces compliant agreements that focus on confidentiality, trade secret protection, and intellectual property rights — lawful alternatives that safeguard business assets without overstepping legal boundaries.
Strategic and Practical Legal Guidance
Clients turn to ARCH Legal for strategic, results-driven advice. The firm helps businesses revise their contracts to avoid litigation risks while providing employees with clear direction on how to respond to enforcement threats. Every case is approached with a balance of legal precision and practical understanding of workplace realities.
A Trusted Ally in Employment Law
Whether you’re a business ensuring compliance or an employee defending your right to work freely, ARCH Legal is a trusted ally. Our firm’s commitment to compliance, fairness, and professional integrity makes it a go-to resource for resolving noncompete and nonsolicitation issues throughout San Diego and California.
Frequently Asked Questions
Are noncompete agreements enforceable in San Diego?
Generally, noncompete agreements are not enforceable in San Diego or anywhere in California. Under California Business and Professions Code §16600, any contract that restrains someone from engaging in a lawful profession, trade, or business is void. This broad protection applies to employees and independent contractors alike. Employers in San Diego cannot use noncompetes to prevent workers from joining competitors or starting their own businesses. Limited exceptions exist for the sale or dissolution of a business,
What is the difference between a noncompete and a nonsolicitation agreement in San Diego?
A noncompete agreement prohibits an employee from working for a competitor or starting a similar business after leaving a job. A nonsolicitation agreement, on the other hand, restricts a person from soliciting the former employer’s clients, customers, or employees. In San Diego, both types are closely scrutinized under California’s strong employee mobility laws. Noncompete agreements are generally void, while nonsolicitation clauses may be partially enforceable — especially those aimed at protecting trade secrets or preventing unfair competition.
Does California law allow employers to restrict employees from working for competitors in San Diego?
No. California law, including in San Diego, prohibits employers from restricting employees from working for competitors. Business and Professions Code §16600 clearly states that any contract restraining lawful employment or business is void. This means employees are free to change jobs, even to a direct competitor, without fear of legal action for breach of a noncompete. An employer may still protect confidential information and trade secrets through separate confidentiality agreements, but it cannot stop someone from accepting a new position elsewhere.
Are non-solicitation agreements valid in San Diego workplaces?
Nonsolicitation agreements in San Diego exist in a legal gray area. While older California cases allowed limited enforcement to protect trade secrets, recent court decisions — such as AMN Healthcare, Inc. v. Aya Healthcare Services, Inc. — suggest even these restrictions may violate §16600. As a result, many nonsolicitation clauses may be considered invalid unless they strictly protect proprietary or confidential information. Employers can still enforce nondisclosure agreements to safeguard trade secrets, but cannot broadly bar former employees from contacting customers or coworkers.
Can my employer prevent me from soliciting former clients after leaving a job in San Diego?
Usually not. In San Diego, employers cannot generally prevent former employees from soliciting clients unless the solicitation involves the misuse of trade secrets or confidential information. California law strongly favors open competition, so general bans on client contact are often unenforceable. However, if an employee uses proprietary customer lists or other confidential data obtained during employment, the employer may pursue legal remedies under the Uniform Trade Secrets Act.
What happens if I signed a noncompete agreement in another state but now work in San Diego?
If you move to San Diego or work for a California-based employer, California law typically governs your employment relationship. Noncompete agreements signed elsewhere are generally not enforceable in California. Courts here refuse to uphold out-of-state noncompetes, even if valid where originally signed, because they conflict with California’s strong public policy favoring employee mobility. However, if the employer tries to enforce the agreement in another state, complications may arise.
Are there exceptions to California’s ban on noncompete agreements in San Diego?
Yes, but they’re very limited. California law allows noncompete clauses only in specific business contexts: (1) when selling a business or ownership interest, (2) when dissolving a partnership, or (3) when terminating a limited liability company. These exceptions let buyers or co-owners protect the value of a business they purchase. Outside these situations, noncompetes are void in San Diego. Even executives, independent contractors, and consultants are covered by California’s ban.
What should I do if my employer threatens to enforce a noncompete in San Diego?
If your employer threatens to enforce a noncompete in San Diego, remain calm and know your rights. California law overwhelmingly sides with employees—noncompetes are almost always void. You should avoid signing new restrictive agreements and gather any documents related to your employment contract. Consulting a San Diego employment attorney is strongly recommended. They can assess whether the employer’s threats have any legal basis and may help you send a response letter or file a complaint if necessary.
Can independent contractors in San Diego be bound by nonsolicitation agreements?
Independent contractors in San Diego generally enjoy the same protections as employees under California’s broad ban on restraints of trade. Noncompete and nonsolicitation clauses that restrict contractors from working for others or soliciting clients are typically void. However, contractors must still honor confidentiality and trade secret obligations. If a contractor unlawfully uses proprietary business information, an employer may take legal action.
Do I need a San Diego lawyer to review or challenge a noncompete or nonsolicitation agreement?
Yes, consulting a San Diego employment lawyer is highly advisable. Even though most noncompete and many nonsolicitation agreements are unenforceable in California, each situation can vary based on contract language, timing, and industry. A lawyer can determine whether the agreement violates state law, advise on how to respond to employer threats, and help protect you from potential retaliation or litigation. They can also ensure your transition to a new employer complies with confidentiality rules.
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