What is a Non-Compete Agreement?

A Non-Compete Agreement is a contract between an employer and employee that generally states that the employee cannot enter into direct competition with the employer while they are employed there. Sometimes, the non-compete is also stated to exceed beyond the employment date of the employee.

In California, non-compete agreements are only valid for employees that have equity stakeholder interest in the business. Employers in California can even be sued for requiring employees to sign a non-compete agreement.

However, if you are an equity stakeholder, it’s in your best interest to have your non-compete agreement looked over by an experienced attorney to make sure you aren’t giving up too many rights.

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